TL; DR
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Over the past month, investors locked up $537 million worth of ETH on Binance’s staking platform to earn interest on their holdings.
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The more ETH is staked → the less there is in circulation → the scarcer the token becomes → the greater the chance of a price increase.
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It’s not groundbreaking, but it does indicate a certain level of investor confidence.
Full story
Right now, the crypto news cycle is in “boring onion territory.”
That is to say, it’s superficially boring, but as you peel back the layers of each story, it becomes more and more intriguing as it goes along.
Take this for example:
Over the past month, investors locked up $537 million worth of ETH on Binance’s staking platform to earn interest on their holdings.
Interest, return? Total snooze-fest.
But dig a little deeper and you start to find some interesting signals, like…
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If investors lock up their ETH, it means they have no intention of selling. (And the less selling pressure on a token, the more stable its price becomes).
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The more ETH is staked → the less there is in circulation → the scarcer the token becomes → the greater the chance of a price increase.
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September is historically a bad time for the markets, so much so that it has been nicknamed ‘Rektember’. We haven’t really seen this kind of sale yet this year.
It’s not groundbreaking, but it does indicate a certain level of investor confidence.
So yeah, an increase in ETH stakes isn’t the kind of news you’d share around the water cooler…
But it’s still a positive signal!
