• Ethereum stakers were impacted positively after the Merge, as their returns improved and selling pressure reduced.
• The Eigen Layer is a new service that allows ETH stakers to secure additional networks with the same initial capital.
• Transaction volume declined significantly, indicating that many of the new addresses holding Ethereum were not selling their ETH.
Ethereum Stakers Impacted Positively After Merge
The Ethereum [ETH] merge had a huge impact on the state of stakers. Even though the prices of ETH took a hit, staking returns improved from 1% in Q3 to 6% in Q4 of last year. The majority of the increase came from a fall in net inflation from 4% to 0%. According to Staking Rewards, the overall revenue generated by stakers reached a value of $2.02 billion at press time. Along with stakers, the number of addresses on the Ethereum network increased and reached an all-time high of 94.83 million addresses.
Eigen Layer Service For ETH Stakers
A new service called Eigen Layer could further improve the situation for Ethereum stakers. Normally once ETH is staked it cannot be used for other functions, but this could change with Eigen Layer which is a restaking primitive that allows ETH stakers to secure additional networks with same initial capital thus providing more reasons to stake ETH.
Transaction Volume Declines Significantly
However despite this transaction volume declined significantly which indicated that many of the new addresses holding Ethereum were not selling their ETH possibly due to low MVRV ratio according to Santiment which was only slightly positive suggesting most holders wouldn’t make huge profits if they sold their ETH at press time and long/short difference declining too suggesting number of short-term holders fell leading to decrease in selling pressure on Ethereum in future.
Increased Address On Network
At press time there were 531,653 validators that had staked their eth holdings doing pretty well in terms revenue increasing by 34.22 % over last month according to Staking Rewards .Also according Glassnode number non zero address on etherum reached all time high reaching 94 .83 million address at press time .