Ethereum 2.0 staking skyrocketed after the successful Shanghai upgrade, sending ETH price to a 2023 peak of $2,120 on April 17. On-chain data examines the negative correlation emerging between smart contract deposits and the ETH price.
The much-anticipated Shanghai upgrade went live on April 12, marking Ethereum’s full transition to the Proof of Stake (PoS) consensus mechanism. As the crypto market momentum cooled in Q2, ETH holders began to stake their coins for passive income rather than perform productive DeFi transactional activity.
Now, 4 months later, it appears that the ongoing, unprecedented rise in ETH 2.0 staking has started negatively impacting the Ethereum price.
ETH 2.0 Staking Has Risen to an Unprecedented Level
Ethereum’s transition to the PoS consensus has triggered an astronomic rise in the ETH staking. According to data from Glassnode, about 37.8 million ETH (31.4% of the total circulating supply) is…
