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Ethereum: Over 35% of ETH now locked, crypto demand explodes!

Tue 13 Feb 2024 ▪ 4 min of reading ▪ by Fenelon L.
Getting informed Altcoins

The amount of Ether (ETH) locked in smart contracts on Ethereum has reached a new record, surpassing 35% of the total supply. This strong demand reflects the growing utility of the Ethereum network.

Un astronaute avec une capuche Ethereum pret a voler

Ethereum Drains Its Available Supply, 35% of ETH Now Locked

Since the successful deployment of the proof-of-stake consensus mechanism with the famous “The Merge”, the number of active validators on Ethereum has continued to grow. Now, according to a recent tweet by analyst Leon Waidmann from BTC-ECHO, more than 35% of circulating ETH are locked in smart contracts.

This record proportion reflects the steady increase in Ethereum’s actual use, beyond mere speculation. An increasing amount of ETH is being “committed” to the future of decentralized finance through staking, DeFi protocols, or DAOs, rather than just being traded or sold.

This underlying trend can be explained by two factors:

Firstly, the voluntary locking of ETH in smart contracts proves a sustained demand from users convinced of Ethereum’s long-term potential. They agree to lock up their funds, sometimes for long periods, in exchange for gains such as interest or transaction fees.

Secondly, this new record reflects the growing utility of the Ethereum blockchain, now perceived not only as a speculative asset but also as a technological platform that enables the creation of cutting-edge decentralized applications in areas such as finance (DeFi), identity, and governance (DAO).

A Premise for the Takeoff of ETH Price?

With the major technical update Cancún scheduled for March 13, 2024, which is expected to significantly reduce transaction fees, and the high expectations surrounding the possible forthcoming approval of Ether spot ETFs by the SEC, Ethereum today seems poised to initiate a powerful bullish movement.

The price of Ether has indeed crossed its early 2024 highs. And with all these ETH locked in smart contracts, the available supply on the markets is drastically reduced. A situation that further enhances the bullish potential of Ether.

Many analysts therefore expect the “Ethereum rocket” to take off soon, driven by the combination of a very strong demand and a real utility that continues to progress. The blockchain seems to have reached a critical mass, a premise for a new historic surge in the months to come.

In summary, with more than a third of ETH now locked on the blockchain, Ethereum seems to have reached a tipping point that bodes well for the coming days. The enthusiasm of investors and developers suggests that new records are on the horizon for the star crypto.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.