Ethereum activity on the rise as on-chain metrics print fresh highs

A trio of on-chain metrics point to confidence in Ethereum’s underlying asset as institutions mull greater exposure to the asset class


NicoElNino/Shutterstock, modified by Blockworks


The total value of staked ether (ETH) continues apace, reflecting positive signs of growth and stability for the world’s second-largest digital asset. 

Following Ethereum’s critical PoS upgrade in April, the amount of ETH that has been deposited to the ETH 2.0 contract now stands above 25.6 million, per Glassnode data.

That figure, worth some $48 billion, represents a rough 70% increase since the new year began, from around 15 million ETH ($28 billion) to current levels. Total staked ETH has effectively doubled when viewed over a year-long horizon.

Yield on staked ether is currently around 4.5%, paid in ETH.

At the same time, the total balance of ETH sitting on exchanges fell to its lowest level in five years, dropping from around 22.5 million ETH at the start of 2023 to 15.3 million ETH — a 32% decline.

According to analysis from CryptoQuant, exchange outflows, as seen in the total number of ETH disappearing from exchanges, indicate a decline in sell-side pressure across the spot market.

Participants continue to bank on the value of the Ethereum network, with those holding the underlying becoming more hesitant to relinquish their assets as they anticipate future demand. 

The increase in staking is coupled with gas prices — a measure of transaction activity — that have generally exceeded the rate at which ether becomes deflationary, and the total supply is expected to contract this year by somewhere between -0.1 and -0.3%.

“As scarcity increases and demand grows, assets generally rise in price,” Greg Moritz, co-founder at AltTab Capital told Blockworks via email.

The number of externally controlled accounts, or private keys, holding a non-zero amount of ETH also shot up to record highs on Tuesday, rising just above 100 million for the first time.

While not perfect, the metric analyzing an approximate number of active users on the network further illustrates a rising demand for the asset as institutions mull the implications of wider adoption.

“We’ve seen a very large uptick in interest from institutional capital and when the smart money is getting into an asset class, it’s because they too see the potential for strong growth,” Moritz said.

Macauley Peterson contributed reporting.

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