Staked ETH surges due to memecoin craze

Investors rushed to stake ether (ETH), pushing deposit activity to the highest level since the Shapella upgrade earlier this year.

according to data Via on-chain analytics tool Nansen, more than 200,000 ETH has been deposited into the network since the start of the week, the first time deposits have outpaced withdrawals since Shapella launched last month. As a result, the amount of ETH locked in the pledge plan has reached more than 19 million, accounting for about 15% of the total circulation.

The outflow comes as more traders flock to memes like pepecoin (PEPE), adding to the strain on the ethereum network and pushing transaction fees to 12-month highs.

Most ETH withdrawn from staking for the first time since Shapella upgrade

Ether Collateralized Deposits Are Booming | Source: Nansen

Lido Finance holds more than 6 million ETH collateralized, and the protocol issues alt tokens to senders representing their locked funds. These alternatives can then be used as liquidity in the broader decentralized finance (DeFi) ecosystem.

Shappella — a portmanteau of Shanghai and Capella, two major ethereum network upgrades that took place simultaneously on April 12 — allowed investors to withdraw their staked ETH at will for the first time.

In a proof-of-stake blockchain like Ethereum, users take part in staking or locking up cryptocurrency (ETH in this case) to help secure and confirm new blocks. Staking participants receive network rewards in the form of tokens, forming a passive investment strategy.

Mr. teacher

According to CoinDesk

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