A recent in-house data study suggests that Ethereum investors are holding their investments for the long-term. On-chain metrics collected from glassnode show an increase in the amount of Ethereum staked on the Ethereum 2.0 testnet.
But how does staking Ether relate to investor sentiment? When investors stake their Ether on Ethereum’s proof of stake testnet, they are unable to sell their tokens until Ethereum’s blockchain migrates from proof of work to proof of stake. While there’s no confirmed release date for this transition, it’s likely to launch in 2022.
So, all of the Ether staked won’t be available to sell for the next 6 months or so. With more than 5% of Ethereum’s total supply already staked on Ethereum 2.0, there may be a supply-side shortage of Ether on exchanges.
To see the full report, check out Data Suggests Ethereum Investors Are In For The Long Run, Despite Bearish Price Movements.
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