Ethereum investors remain bullish.
In a tweet on Monday, WuBlockchain reported that over 94k ETH was staked on September 1, the highest number staked in a single day since May. A look at Oklink data puts the figure at 94,997 ETH at an average price of $1,543.51. The amount of ETH on the Ethereum 2.0 staking contract has now surged to about 13.522 million.
“On September 1, 94,000 new ETHs were staked in a single day, the largest single-day staked since May this year. At present, the number of staked Ethereum consensus layer contract addresses has increased to 13.522 million, accounts for 11.3%,” WuBlockchain reports in the tweet.
On September 1, 94,000 new ETHs were staked in a single day, the largest single-day staked since May this year. At present, the number of staked Ethereum consensus layer contract addresses has increased to 13.522 million, accounts for 11.3%. https://t.co/cZZpQpOkK9
— Wu Blockchain (@WuBlockchain) September 5, 2022
It is worth noting that the spike in staked ETH is a sign of continued investor bullishness in the leading digital asset. In anticipation of The Merge, the digital asset has been the focus of price speculation. Notably, in August, CryptoQuant reported that Ethereum was leading Bitcoin in terms of daily exchange trading volume. Additionally, about 36,000 ETH were added weekly to the staking contract during the month.
While investors appear bullish, price predictions by pundits in recent weeks have not been as positive, at least in the short term. Bloomberg analysts recently reported that they expect the asset price to dip below the $1,000 price point owing to macroeconomic factors despite Merge speculation.
It bears mentioning that excitement around the Ethereum upgrade has not made the asset impervious to hawkish posturing by the Fed. A speech by Fed chair Jerome Powell a couple of weekends ago caused the asset’s price to plunge by 10%.
For the uninitiated, the Ethereum Merge is the transition of the Ethereum network from the proof-of-work (PoW) consensus model to proof-of-stake (PoS). The move is expected to future-proof the blockchain network as it becomes less energy-intensive, cutting its energy consumption by 99.95%. In addition, it also promises to alter Ethereum’s supply and demand dynamics, making it more deflationary.
It bears mentioning that Ethereum stakers will not be able to withdraw their staked ETH till after the Shanghai upgrade, which is believed to be years away. However, they will start receiving liquid ETH rewards on their staked assets post-Merge.
BTC.com data shows that The Merge is just ten days away. Notably, the Bellatrix upgrade of the Beacon chain is expected to go live on Tuesday in preparation for The Merge.
Vitalik Buterin, the founder of Ethereum, stated in July that the Merge would not be fully priced in until it occurs. Ethereum is trading at the $1,560.36 price point, up 7.78% in the last seven days.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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