Despite the upward trend in Ethereum prices, there has not been a significant surge in network activity. However, the Shanghai upgrade has played a crucial role in stimulating deposit activity rather than triggering a wave of withdrawals, showcasing stakes, and increasing confidence in the new flexibility offered by liquid staking tokens.
In a recent report by Glassnode, despite the rise in Ethereum (ETH) prices, there has yet to be a significant increase in network activity. Gas prices, which indicate the demand for backspace, have remained relatively low, particularly in the week following the announcements about ETF filings. Simply put, during a previous upgrade in April called the Shanghai upgrade, followed by a similar rally in ETH markets, gas prices increased by 78%. In comparison, gas prices have only risen by 28% this month.
After the Shanghai upgrade, daily exchange deposits ranged from 28k – 32k, while daily staking deposits ranged from 460 to 8,108. Additionally, when asset management firms began filing Bitcoin ETF applications in June, the daily exchange deposits increased from 32k – 95k, and the average daily staking promise was 2,627.
Furthermore, it is worth noting that between these two events—the Shanghai Upgrade and the Bitcoin ETF application—on June 2, the staking deposit reached a six-month high of 13,595.
Glassnode’s analysis reveals that the volume of newly staked Ethereum has been equal to or higher than that of Ethereum flowing into exchanges since the launch of Shanghai. Additionally, the report highlights a strong trend favoring liquid staking providers, with Lido emerging as the leader in this sector. Lido’s V2 update allowed node operators to withdraw staked Ethereum, leading to a redemption of 400k stETH ($721M) and a contraction in the stETH supply.
However, the surge of new Ethereum deposits has more than compensated for this decline, resulting in a new all-time high of 7.49 million stETH. Compared to its liquid staking competitors, Lido stands out as the clear leader with a supply 16 times larger than its closest competitor.