Ethereum Shines As Staking Hits All Time High, ENS Fees Surges

Despite the broader crypto market’s volatility, Ethereum (ETH) has been the talk of the town. Significantly, on August 14, Ethereum staking deposits hit an all-time high. Glassnode’s data reveals 27.4 million ETH now reside in the ETH 2.0 depositor’s contract. 

Ethereum Staking Makes New ATH

Investors, eyeing a 3.29% yearly yield, have staked these tokens expressing their faith in the Ethereum network. Even if they can’t make short-term sales, investors are ready to lock up substantial amounts for returns.

📈 #Ethereum $ETH Total Value in the ETH 2.0 Deposit Contract just reached an ATH of 27,407,435 ETH

View metric:https://t.co/SzbMPqvhlb pic.twitter.com/GDUfBsMe58

— glassnode alerts (@glassnodealerts) August 14, 2023

Additionally, there’s been a notable uptick in the Ethereum Name Service (ENS) fees. On August 13, the ENS accumulated a record-breaking $235,000 in fees. It’s the highest in almost a year since September 11, 2022. Ethereum Name Service (ENS) was up 0.18% from its 24-hour low of $8.93 at press time. ENS market cap and 24-hour trading volume rose 0.05% and 16.87% to $265,548,681 and $6,149,789 during the recovery.

This surge indicates a growing demand for these unique Ethereum domains. Consequently, crypto journalist Colin Wu says these personalised addresses, simplifying complex blockchain codes, have crossed the 2.6 million mark.

Ethereum’s burn rate slumps

However, the burn mechanism of Ethereum, viewed by many as a counter to inflationary pressures, is showing signs of cooling. On August 12, Ethereum saw a 570.54 ETH burn rate, close to the previous low of 498.16 ETH in October 2022.

Moreover, a deeper analysis reveals a significant movement from Ethereum’s Layer 1 (L1) to Layer 2 (L2) alternatives like Arbitrum and Base. These solutions manage transactions outside the main chain, reducing the burden on Ethereum’s mainnet. As a result, the number of transactions contributing to Ethereum’s burn rate has decreased.

ETH/USD technical analysis

Ethereum (ETH) has been under bearish pressure in the previous 24 hours after bulls failed to break the $1,859.92 barrier. Bulls, however, halted bear reign as ETH traded at 1,850.38, up 0.09% at press time. Despite this short-term decline, ETH remains over $1,800, indicating strong market buying.

The trading volume of ETH increased by 97.46% to $4,138,397,065 while the market capitalization decreased by 0.12% to $221,859,615,533, indicating that while some investors are cashing out, many are actively trading and trust in the ETH’s potential.

                                                         ETH/USD price chart (source: CoinMarketCap)

Besides technical shifts, the Ethereum space faces challenges from dwindling institutional interest. These institutions, with their vast financial clout, drive the burn rate. Without them, Ethereum’s burn rate might remain substandard.

While Ethereum remains a dominant force in the crypto world, these recent trends warrant close monitoring. The blend of record staking, surging domain fees, and a diminishing burn rate presents a complex picture for investors and enthusiasts alike.

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.