As the Balance Validators Status and Participation Rate imply, the Ethereum staking feature has hit another milestone, indicating that the majority of the cryptocurrency community is interested in the new feature that the second-largest cryptocurrency will bring to the table.
The quantity of coins in the staking queues now totals 302,000 ETH, or $800 million, according to the statistic. The staking queue is a list of wallets that are eligible for the staking feature but have yet to be activated. On the market, there has never been such a quick increase in the volume of funds in the queue.
First and foremost, Ethereum staking secures a specific quantity of Ether for at least three months. With more money tied up in contracts, there will be less selling pressure on the cryptocurrency market. Aside from the reduced coin issuance, the short-term lock on the coins will also help Ethereum become deflationary.
However, while the first months or even years of Ethereum staking will benefit the currency. Then, and its ecosystem, the 12 percent APY rewards will put pressure on the market. So, when the majority of funds are unlocked. Then, and in the event of a poor market performance, investors will choose to take profits to cover their losses.