Ethereum developers are discussing raising the staking limit from 32 ETH to 2048 ETH. Large players have to split their stakings at the moment, and this is very inconvenient for crypto exchanges like Coinbase that got thousands of users into staking to become validators of the Ethereum network. This artificial limit forced crypto enthusiasts to queue in order to stake their tokens. More than 600,000 users have become validators of the network, while another 90,000 are in the waiting list.
This demonstrates a high demand from investors to become a member of the Ethereum ecosystem. Moreover, investors agree to long-term membership by staking their tokens without any immediate profit. This is very uncommon for the crypto industry, where most investors come to get some easy money in the short term.
Ethereum staking is prompted to create a diversified infrastructure around its ecosystem. Many other crypto projects offer derivatives on the staked tokens that could be used somewhere else. So, you don’t have to freeze your ETH on the deposit, while still having a passive income from staking. This might sound risky, but investors seem to accept this risk. EigenLayer has launched a re-staking protocol and has reached the limit of allocated funds within five hours from the project’s launch.
However, even the booming Ethereum project doesn’t mean its token prices would surge amid global negative sentiment in the financial markets. A short rally in the stock market is primarily associated with the pause in the interest rate hike cycle by the Federal Reserve (Fed). The Fed is acting with uncertainty, as it is not clear whether current interest rates will be enough to help inflation continue down, or if more rate hikes will be needed to anchor it. So, monetary policymakers have to take a pause to reassess the situation.
Many central bankers in developed nations believe that inflation will continues to run high and are calling for more actions to bring it down. The Fed seems to have the same hawkish mood, as some of the Federal Open Market Committee (FOMC) members seem eager to raise fund rates in September. In such a nervous environment, risky assets are unlikely to rally in the coming months. So, the long-term bet on the second largest crypto project could be a wise option with the lowest risks possible for the crypto market. On the other hand, ETH prices are seen to be close to the bottom, adding to Ethereum’s popularity.