The Reason Behind Ether’s Recent Uptick

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On February 15th, Ether (ETH) saw its price rise. It rallied till it reached a 3% excess over the previous 24 hours. It was trading higher than the level of $2800 as a result. Taking into effect the previous week till Feb 15th, the price of the token had seen an increase of 16%. It mirrored the 16.3% uptick of Bitcoin during a similar time period.

The Most Recent Factors For Ether’s Uptrend

As per Dune’s data, the Ether supply that is Beacon Chain-staked has reached a value of 30,708,316 ETH. This accounts for 25.6% of all the current supply of ETH. When the article is being written, the net worth of this amount is more than $86.68 Bn. As such, these ETHs 31.65% are staked via Lido. Between February 1st and February 15th, data indicates that over 600,000 ETH has been deposited by investors into the staking contract of Eth 2.0.

Protocols for restaking Eth have also seen the number of tokens locked on blockchains on layer-2 increase. EigenLayer’s, a restaking protocol for Ethereum, TVL (total value locked) saw an increase of 33% during the period of the week ending on February 15th. Its value, at the time of writing, was $7.0Bn. This meant that EigenLayer had become the third-most valued TVL, surpassing Aave and JustLend, competing lending protocols for cryptocurrency.

To restake a token, locked-up or staked Ether is used to boost the staking yield of Ethereum. A share of the yield of the protocol and points are directed towards airdrops. A staked Ether increase indicates that the network is secure and efficient. At the same time, it has also decreased how many tokens are supplied to exchanges and available for buying and selling. This further causes the demand to increase because of the reduction in supply. For Eth, this may indicate a bullish period.