TL;DR
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This past month, investors have locked up $537M worth of ETH on Binance’s staking platform, in order to earn interest on their holdings.
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The more ETH is staked → the less there is circulating → the more scarce the token becomes → the greater potential there is for a price jump.
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It’s not ground breaking, but it does indicate some level of investor confidence.
Full Story
Right now, the crypto news cycle is in ‘boring onion’ territory.
That is, it’s boring on the surface, but if you peel back the layers on each story, it gets more and more intriguing as you go along.
Take this for example:
This past month, investors have locked up $537M worth of ETH on Binance’s staking platform, in order to earn interest on their holdings.
Interest, yields? Total snooze fest.
But dig a little deeper and you start to find some interesting signals, like…
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If investors are locking up their ETH, that indicates they’re not about to sell. (And the less sell pressure on a token, the more stable the price becomes).
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The more ETH is staked → the less there is circulating → the more scarce the token becomes → the greater potential there is for a price jump.
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September is historically a bad time for markets, so much so that it’s earned the nickname ‘Rektember.’ We haven’t really seen that kind of sell off this year.
It’s not ground breaking, but it does indicate some level of investor confidence.
So yeah, an increase in ETH staking isn’t the kind of news you’re going to run to share around the water cooler…
But it’s still a positive signal!
