Ethereum price performance was strong in 2023 but failed to keep up with Bitcoin. The token rose 100% in a year while Bitcoin price saw a 150% price increase. This does not change the fact that the Ethereum network is in a particularly strong position. Especially in the area of strikes. This function of the blockchain has never been as successful as it is now.
Ethereum staking is made easier thanks to the MetaMask wallet update
Ethereum news
Record amount in Ethereum staking contract
This is according to data from IntoTheBlock. About 24.3% of all ETH is locked into the staking contract, which is a higher percentage than ever before. In total, this amounts to about 29.1 million ETH, which is worth about $66 billion at current prices. This is also a record in absolute terms; Finally, the network has been largely deflationary since the merge upgrade in September 2022. The number of coins basically no longer grows.
Whether this means strikes are more popular than ever is unclear; The benchmark does not measure the number of participants. It could be that the amounts come mainly from large investors.
ETH use popular despite problems
Meanwhile, the Ethereum (ETH) network is facing some challenges. At the end of last year, Ethereum co-creator Vitalik Buterin advocated a return to the “old core values”. This meant decentralization, resistance to censorship and neutrality. That would be anything but self-evident, because since 2022, special software has ensured that certain transactions that do not comply with American sanctions cannot be processed.
The enormous data traffic on the network is also a problem. As a result, transaction costs are very high and it sometimes takes a long time for a transaction to be processed. Centralization is also noticeable in the fact that only one validator processes the vast majority of transactions – almost 80% in fact. This further exacerbates the problem of network pressure.
It is positive that there are also a number of applications for spot ETFs for Ethereum with the American Securities and Exchange Commission (SEC). Now that similar funds have been approved for Bitcoin (BTC), there is hope that approval for ETH funds will take less time.
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