CryptoQuant.com2023-05-24

Momentum Builds in Ethereum Staking as Bitcoin Holds at Historically Crucial Support Level

The amount of Ethereum staked has been rising rapidly, hitting record levels day by day. As of now, there are 21.93 million ETH staked. The Shapella upgrade led to a swift reduction in Ethereum’s total supply, reinforcing its existing deflationary trend. Since this upgrade, the supply has dropped by 251K ETH. The ability to freely withdraw staked ETH provided investors with more control, encouraging them to stake more. This has led to a notable increase in the total staked value, which now represents 17.41% of Ethereum’s total supply. The rate of Ethereum's deflation has quickened due to an increase in burnt fees, which have spiked significantly over the past year. The Ethereum network also exhibits strong activity, reflected in a high transaction count, the highest it has been in a year. In the meantime, Bitcoin demonstrates resilience as the number of active addresses hit 1 million after a recent upswing. Bitcoin's current value matches the average investment of holders who've been in possession for 1 to 3 months. This specific investment average has traditionally served as a solid support level, around $26.5K. Looking at Bitcoin from a broader viewpoint, and considering the Net Unrealized Profit/Loss (NUPL), we see that investors, on average, have about 25% of profits that are yet to be realized. This is a typical scenario at the start of a Bitcoin bull market, the phase we find ourselves in now.