Ethereum Strike Queue Nears All-Time High, Ahead of Mainnet Merge
Ethereum is well on its way to the merger as more milestones are reached. The move to proof of stake will undoubtedly be a game-changer for the blockchain. So as the day before the merge draws closer, users of the network have increased their activity in recent times. One of the places where Ethereum has registered an uptick has been the strike queue which is now approaching its previous all-time high.
Ethereum Stake Queue Exceeds 300,000
Ethereum’s staking queue is a good indication of how users of the network view it. When this is low, investors may be away more and not wanting to bet their coins on the network. However, when this number starts to rise, it signals a number of things for Ethereum, including that users are looking at it more positively.
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This row has been rising lately and has nearly reached its previous high as of March 17. It had previously hit a new high of over 330K in June 2021, when the bull rally was in full swing. But the subsequent downtrend in the market had seen this number fall, making it go into the bear trend. Only to start a new recovery in August of the same year.
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As for 2022, the number had grown steadily but hadn’t seen a significant increase. This boost came about two weeks into March when the number of wallets in queue exceeded 300K† It is the strongest increase ever recorded by the Balance Validators Status.
What does this mean?
For a network like Ethereum, beating and setting new records is not new. But as with any other thing, such a high interest rate is sure to have an impact on the network and the price. In this case, the number of wallets that are now eligible to bet on the network is higher and waiting to be activated to do so. When such a large number of wallets are given the green light to begin staking, it will take a large chunk of the coins out of current circulation.
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This is because it takes 32 ETH before a wallet is eligible to become a validator on the network. This means that when these wallets are activated in the queue, approximately 1 million ETH coins will be locked for at least three months, which is the minimum wagering time for Ethereum.
Take a look at previous charts shows that times like these have coincided with the price increase for ETH. However, there has been one deviation during the November rally where ETH hit a new high above $4,000.
Nevertheless, as such volumes of ETH are temporarily taken out of circulation, it will most likely positively impact the cryptocurrency’s value, pushing its value to previous highs.
Featured image of MARCA, chart from TradingView.com