Ethereum Holds Above $2,600 as Liquid Staking Surges Past 14 Million ETH

Ethereum (ETH) is currently trading above $2,600, up over 5% in the past 24 hours. This positive price movement comes as the Ethereum liquid staking ecosystem continues to grow rapidly.

Data shows that liquid staking protocols now collectively hold over 14 million ETH, representing 11.74% of the total Ethereum supply. This is a significant milestone, as the amount of ETH under liquid staking management is now over 5 times greater than the 2.28% held by U.S. based Ether ETFs.

Lido Finance remains the dominant player in the liquid staking space, accounting for nearly 69% of the total 14.14 million ETH held by these protocols. Other major liquid staking platforms include Binance, Rocket Pool, Mantle, and Coinbase.

The concentration of Ethereum staking power in the hands of a few large players has raised concerns from Ethereum co-founder Vitalik Buterin. Buterin has cautioned that this trend towards centralization could undermine the network’s security and decentralization if not properly addressed.

Despite these concerns, on-chain data suggests Ethereum may be primed for a comeback. Weekly technical indicators point to a potential price bottom, while Ethereum’s trading volume has surpassed that of rival blockchain Solana, signaling strong ongoing demand.

Crypto analysts note that factors like continued institutional adoption, a contrarian investment opportunity, and Ethereum’s historical price cycles lend support to the argument that ETH may be poised for a rally in the coming weeks. However, a lot will depend on whether Ethereum can hold critical support levels and see a sustained increase in buyer interest.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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