• Ethereum (ETH) holders are locking their ETH on staking facilities, preparing for the Shanghai upgrade.
• Despite this, Ethereum’s daily active addresses and gas fees have been decreasing in the last few days.
• ETH’s network growth metric has fallen to its lowest weekly level in the last 24 hours.
Ethereum (ETH) Staking on the Rise
According to 9 April’s Glassnode data, the amount of liquidity locked in ETH 2.0 deposit contracts has reached an all-time high (ATH). This suggests that investors are increasingly interested in staking their ETH prior to the upcoming Shanghai upgrade.
Decreasing Network Activity
Despite such enthusiasm for staking, Ethereum’s daily active addresses and gas fees have been decreasing over the past few days. This indicates a decrease in transactions taking place on the Ethereum blockchain, resulting in lower demand for ETH. The network growth metric has also fallen to its lowest weekly level within the last 24 hours at press time.
Positive Outlooks
The rise of ETH 2.0 deposits signifies increasing investor interest towards staking their tokens before the much anticipated Shanghai upgrade. Such confidence is likely to make a positive impact on Ethereum’s future price performance and overall adoption rate as more users are attracted towards staking rewards instead of trading activities.
Risks Involved
However, investors should be aware of potential risks involved when participating in any form of staking activities; especially considering that no one can predict what will happen post-upgrade with 100% accuracy and certainty. Therefore, it is important to do thorough research prior to investing or participating in any activity related to cryptocurrency markets and blockchain technology in general.
Conclusion
In conclusion, despite rising enthusiasm surrounding Ethereum’s upcoming Shanghai upgrade which is driving up liquidity locked in ETH 2.0 deposit contracts; there is still evidence of slower network activity which may limit ETH’s potential upside going forward. As such, investors should remain mindful of potential risks while making well-informed decisions based on thorough research beforehand regarding any kind of cryptocurrency investments or activities related to blockchain technology