Ethereum's Shanghai upgrade on Wednesday has seen a surge of deposits to the network. According to data collected by Nansen, gross staking deposits have hit $198.7 million in the past 24 hours alone, equivalent to 94,800 ETH. This is because Ethereum now runs on a proof-of-stake blockchain, requiring users to stake cryptocurrency in order to secure the network.

These staking rewards incentivize users to pledge their ETH in the first place. Ethereum's much-anticipated transition to proof of stake, known as the merge, occurred last year. For now, deposits are still outpaced by withdrawals, indicating that more entities are pulling out more assets than staking them.

Analysts, however, anticipate that this trend will eventually lead to a steady "baseline" as this first wave of validators is able to accrue rewards and withdraw them. Already, there has been a brief moment when deposits far outpaced withdrawals, with 27,000 ETH deposited to only 7,615 ETH withdrawn.

Further, a few larger entities have made the most sizeable deposits to markets. They include industry stalwarts such as Lido, OKX, Kiln.fi and Frax. However, one particular wallet, 'P2p ETH2 Depositor', is responsible for the 50,000 ETH deposit.

At press time, 874,000 ETH remains, waiting to exit the network. Analysts, however, expect that much of the ETH will be put back to work in the near future given the recent bullishness seen throughout the Ethereum staking markets.



Other News from Today