- Large amounts of ETH get unstaked from CEXs.
- Activity on the network remained high, interest in NFTs grew.
Ethereum [ETH], over the last few days, witnessed a surge in its price following BTC’s rally. However, in the staking landscape, the story was quite different.
Not interested in the APR
A crypto analyst noted a significant increase in the amount of ETH being unstaked through centralized exchanges (CEXes) in the last five months.
This shift was expected because many users, particularly those on CEXes, are more interested in the asset’s price increase than staking for annual percentage rate (APR) gains.
According to the analyst, it’s premature to sell at this point.
The amount of $ETH staked through CEXs has experienced its highest surge in unstaking in the past 5 months.
I fully expected this to happen as most users (especially on CEXs) are not staking for the APR gain but the price appreciation of the asset.
Still too early to sell IMO. pic.twitter.com/3Vpi7gIYHy
— Emperor Osmo🧪 (@Flowslikeosmo) November 7, 2023
The increase in unstaking through centralized exchanges (CEXs) could have several implications for Ethereum.
On the positive side, more ETH being unstaked might indicate that users are becoming more active and could potentially be looking to use their ETH for trading or other purposes.
The increased liquidity in the market could lead to more trading activity and potentially drive the price of ETH higher.
However, there are also negative aspects to consider. The fact that users are unstaking their ETH could indicate reduced confidence in the asset’s long-term prospects.
If more people are looking to sell or trade their ETH, it could put downward pressure on the price. Additionally, if a significant amount of ETH is unstaked, it might affect the overall security and decentralization of the Ethereum network.
Coming to the state of the Ethereum network, the gas usage has remained steady. This showed that the activity on the network was high at the time of writing.
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This could be due to the massive surge in NFT trades that occurred on the Ethereum network over the past few days. An active Ethereum ecosystem could provide ETH much needed stability in the volatile markets.
At press time, ETH was trading at $1,886.58 and had fallen by $0.03% in the last 24 hours.
Source: Santiment