Key Points
- The spot Ethereum ETF approval in the US is anticipated within the next two weeks, leading to a surge in ETH accumulation.
- The total amount of staked ETH in the market is currently at an all-time high.
The upcoming approval of the spot Ethereum ETF in the United States has led to a significant increase in ETH accumulation. Analysts expect the approval to take place within the next two weeks.
Investors are eagerly accumulating ETH to capitalize on the expected price rally following the approval. Current on-chain data reveals that the total amount of staked ETH in the market is at an all-time high, which is helping to regulate the circulating volume.
Staking and Ethereum Supply
Julio Moreno, head of research at CryptoQuant, noted that the quantity of staked ETH is nearing its all-time high, currently standing at 33.3 million ETH or 27.7% of the total supply.
The increasing supply of Ethereum suggests a return to its inflationary asset status, which could undermine its ability to serve as a store of value. Staking is one method to counteract this, as it locks ETH for a set period and removes it from circulation.
Moreno also mentioned that the supply of ETH is slowly growing again, marking the highest level since December 11, 2023.
Ethereum Liquidity and ETF Approval
Spot trading volume data indicates that Ether (ETH) could be nearly as liquid as Bitcoin (BTC), with ETH spot trading volume ranging between 80% and 90% of Bitcoin’s volume in recent weeks.
According to CoinMetrics, approximately 12% of Ether’s total supply is currently used in smart contracts or bridges connecting different blockchains. When including tokens that are staked, around 40% of Ether’s cryptocurrency supply is considered “locked” and not actively traded.
The current focus is on the approval of the spot Ethereum ETF. Similar to Bitcoin, the approval of the spot ETF for Ethereum could lead to an influx of fresh capital, potentially pushing Ethereum to new all-time highs of $5,000 and beyond. Analysts are already predicting billion-dollar inflows into Ethereum ETFs within a few months of the approval.
Justin Sun, founder of Tron, has also been accumulating Ethereum, acquiring more than $1.1 billion worth of ETH over the past few months.
