Ethereum is testing new highs, and projections indicate that it could be headed much higher. This follows the growing adoption of the ETH network for DeFi and other purposes.
Data shows that amount staked in the second largest crypto asset by market cap is growing too and has now hit $10.07 billion. As of April 22nd, the amount of Ethereum staked stood at 3.9 million ETH with the cause of the crypto asset reaching as high as $2582 according to Coinmarketcap.
This data is an indicator that more people are opting to stake ETH rather than sell it. It is also an indicator that people believe that with the ongoing works on Ethereum 2.0, it will have the edge over its POS competitors such as Cardano. This will make holding the digital asset a viable long-term investment that rivals traditional investments.
The shift to Ethereum 2.0 started in December, and immediately, investors staked over a million Ether. With the move to POS, the network will rely on those staking to maintain the network. This is more efficient and makes Ethereum highly scalable, as compared to the original Proof-of-Work protocol.
The shift comes at a time when the digital asset is growing in adoption in DeFi, and as its value grows, so will the value of the staked ones be. This is one of the reasons why the ETH blockchain is drawing lots of interest from institutional players. For instance, Grayscale has already accumulated 3 million ETH.