Ethereum’s latest ‘low’ – How ETH’s price action is affecting staking

Although ETH’s price has dropped by double-digits over the past month, the validator count on its network has continued to rise.Information from the on-chain data provider revealed that the number of coins transferred to the staking deposit contract address on that day totalled 11,285 ETH .Assessed using a 30-day moving average, the amount of new ETH staked initiated its downtrend on 29 February, with the same since down by over 85%.

For example, on the leading liquid staking platform Lido Finance , its staking Annual Percentage Rate has trended south since 19 April. With a reading of 2.9% at the time of writing, this has dropped by 19% since the aforementioned date, according to data fromAlso, the coin’s short-term holders, known to be the major drivers of day-to-day price action, are often paper-handed. This means they are willing to sell at any sight of “trouble.

As such, they may be discouraged from staking their holdings if ETH’s price continues to drop, and they may opt to sell their coins instead.Despite ETH’s current performance, voluntary exits by its network validators have continued to fall. According to Glassnode’s data, after rallying to a YTD peak of 2000 on 2 April, the daily count of validators that have left the network has dropped by 61%.

Due to this, the number of active validators on the network has continued to surge. At press time, there were 994,000 active validators on the Ethereum network.Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.Subscribe to get it daily in your inbox.

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