- The Shanghai hardfork has motivated a fresh wave of Ethereum staking deposits.
- Glassnode identifies renewed confidence for stakers in the newly found flexibility.
- Deposit activity peaked on Sunday when ETH staking recorded over 13,595 new deposits.
According to Glassnode, an on-chain and financial metrics platform, the Shanghai hardfork has motivated a fresh wave of Ethereum staking deposits, as stakers find confidence in this new flexibility. In a recent update, the on-chain financial metrics platform revealed that deposit activity peaked on Sunday when ETH staking recorded over 13,595 new deposits worth over 408,000 ETH.
The Shanghai hardfork has motivated a fresh wave of #Ethereum staking deposits, as stakers find confidence in this new flexibility.Deposit activityreached a peak on 2-June, recording over 13,595 new deposits (worth over 408k ETH). For comparison, we can compare this to ETH… pic.twitter.com/Z0nubl0M4r— glassnode (@glassnode) July 4, 2023
To further explain the growth, Glassnode compared the ETH staking deposit with the ETH exchange deposit transactions over the same period. It showed that ETH staking deposits overshadowed the exchange deposit transactions by an increase of more than thirteen times in comparison. The ETH exchange deposit transactions remained flat at about 30,000 during the same period.
Ethereum completed its Shanghai upgrade on March 12, 2023. It is a hard fork that introduced new capabilities in the Ethereum network’s ecosystem. One of the notable changes that came with the upgrade was to give validators the power to withdraw staked coins. It introduced a kind of flexibility that did not exist in the cryptocurrency industry before now.
At the time of the upgrade, crypto analysts debated the benefits of ETH staking against the risk of liquidation. Glassnode’s recent tweet shows that the Shanghai update encouraged ETH holders to stake more of their tokens, and not liquidate them.
Moreover, ETH holders appreciate the flexibility enabled by the new upgrade and are willing to stake their ETH tokens. The prevailing belief is that the Shanghai upgrade has improved the confidence of ETH holders, who now believe they can react to market developments without restrictions since they can access their ETH tokens whenever they want.
The increased adoption contributes to the bullish ETH trend that saw the altcoin break above strong resistance at $1,900. ETH traded at $1,957 at the time of writing, backed by a bullish momentum that could see the price test the $2,000 psychological level soon.
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