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Ethereum 2.0 Achieves Record-Breaking Staking Value – Is a Bullish Rally on the Horizon?

The Ethereum 2.0 staking value is breaking records

 Despite Ethereum's (ETH) price being under significant selling pressure, Ethereum 2.0 staking is experiencing a surge. September has been especially productive in this regard, with long-term holders of the top-rated cryptocurrency depositing 856,709 ETH in that month alone. This has driven the total staked amount to a record-breaking 30 million, equivalent to $48 billion in fiat.

Source: GlassNode

Data from Glassnode, an on-chain analytics platform, illustrates a parabolic rise in the ETH 2.0 price concerning the total value staked. This surge began with the launch of the Beacon Chain when ETH 2.0 was set into motion. Even during bearish market conditions, the amount of funds locked in the smart contract has continued to follow an impressive upward trajectory, indicating unwavering investor trust in ETH staking. 

However, it's important to note that this figure represents just a quarter of ETH's current supply, which stands at 120,256,949 as of the time of writing. With the transition to Proof of Stake (PoS) rendering ETH a deflationary cryptocurrency, reducing its supply by 0.2% since the Merge, any further increase in total staked value has the potential to spark a robust rally once selling pressure eases.

ETH 2.0 staking surges as Fed presses pause on rate hikes 

The Federal Reserve's decision to pause rate hikes, announced on September 20, was driven by the desire to provide relief to savers and borrowers amidst consistently rising rates aimed at curbing inflation. On the other hand, it meant that the yields on risk-free US government bonds remained unchanged, which prompted investors to seek greener pastures, which resulted in them flocking to ETH 2.0 staking. 

Such behavior signifies growing confidence in the long-term potential of Ethereum staking and its advantage in generating profits compared to traditional assets, a point consistently emphasized by CryptoStake. 

What about the ETH price?

 ETH is currently experiencing a price surge after an extended bearish phase, mirroring the broader cryptocurrency market. After a bullish Q1, during which the price had risen from $1,195 to $2,143, the bears regained control, pushing ETH into a descending channel. However, eight weeks ago, the buyers mustered enough strength to push the price out of the descending channel and away from the 50-period EMA, further confirming the upward trend. At the time of writing, the price is hovering around $2,200, trying to establish a new higher high or test the $2,400 level. 

ETH/USDT Weekly Chart

However, the future remains uncertain, especially if the price fails to establish a foothold at $2,200 and drops back below $2,000. But that may constitue a healthy pullback after which the rally could continue to $2,400 and above. Furthermore, the growing demand stemming from ETH 2.0 staking could potentially provide the impetus for an inception of the true bullish market.