The queue to enter Ethereum staking pools is almost twice as long as the queue to exit. This is the result of a new idea from Bitmine, which wants to stake its ethers.
Ethereum coming back into favor with investors?
The ETH rate still cannot stay above USD 3,000. Currently, the price has fallen below this level.
Despite this, there are many interesting things going on in the background. For example, there is almost twice as much ETH in the queue for staking pools as what is withdrawn from them. In other words, more and more Ether will be staked, which will reduce the free supply of ETH in the market. There is approximately 745,619 ETH in the queue to enter (with a waiting period of almost 13 days), while the queue to exit is approximately 360,518 ETH (with an 8-day waiting period).
This change occurred on Saturday, when both queues had approximately the same amount of ETH. Since then, the “entry queue” has become longer.
Everything is happening at a time when Bitmine, a company that invests in ether, announced that it intends to stake its resources. Lookonchain indicated that the company had started staking as much as 342,560 ether worth approximately $1 billion in the last two days.
Why is it important?
Ethereum is a Proof-of-Stake network that requires validators to stake assets to secure the blockchain. “Removing” ether from pools is often seen as a signal that validators want to sell their ETH, while staking is seen as a sign of confidence that this cryptocurrency can be hodled and still make money by staking ether in pools.
Therefore, if the above trend continues, the supply pressure that causes ether to lose value will decrease. In addition, the supply of ETH on the free market will decrease. This is also visible on cryptocurrency exchanges – and there is a shortage of ethers.
