Investors are choosing passive returns over trading on short terms, resulting in a tightening of liquidity. SharpLink is leading the way in corporate treasuries.
Dune Analytics dataThe amount staked in EtherETH) surged past 35 million tokens this week, marking a new all-time high for Ethereum’s proof-of-stake network.
The circulating cryptocurrency supply, which is more than 120,000,000 tokens in number, now comprises over 28 percent of this amount. More than 25% of Ether is locked up in staking agreements. The available supply of liquid Ether on exchanges will continue to shrink as more public companies and institutions choose to keep the cryptocurrency rather than trading it.
Who’s blocking ETH supply?
Ethereum stake has increased steadily ever since the network switched to proof-ofstake late in 2022. But recent months have seen a greater increase. A June 18 CryptoQuant article states that Ethereum staking has been steadily increasing since the network transitioned to proof-of-stake in late 2022. However, recent months have seen a sharper uptick. reportOver 500,000 ETH were staked during the first six months of the year, taking the total to over 35 millions.
Dune Analytics’ data indicates that Lido controls approximately a quarter (or 8.75 millions ETH) of the staked tokens. Coinbase, Binance and other centralized exchanges validate together another 15%.
The more important shift, however, is occurring off-chain. Corporate balance sheets have quietly become ETH accumulation mechanisms. Ether has become a treasury investment for these companies, not only as a way to invest in tech.
According to crypto.newsSharpLink Gaming Inc., listed on Nasdaq, purchased $463 million worth of ETH The company announced that it had staked over 95% of its total holdings to generate yield while contributing to Ethereum’s network security. It also revealed that it has staked 95% of total holdings in order to increase yields while contributing towards the security of Ethereum’s networks.
SharpLink’s logic for buying ETH and staking it is structural. This token provides a yield of roughly 3% for staking. SEC’s guidance on May 2024 has effectively allowed institutional participation, as it clarifies that protocol level staking is not subject to securities regulations.
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Source: crypto.news
