The blockchain network is an avenue for investors to earn rewards by staking and validating transactions. The rewards can be a handful as investors earn more cryptos from staking because investing their funds there is profitable.
Transactions worth $140 million have been tracked to have taken place involving the Ethereum staking contract from two anonymous wallets, according to a tracking firm, Nansen. The whales made the current transaction less than 24 hours ago.
The transaction is an indication that millionaires are moving funds to stake in the Ethereum Blockchain network. The two whales involved in the contract staking are not among the largest on the contract, but the difference that stands out is the huge amount of funds involved in the staking.
Another Ethereum millionaire has staked 62,000 Ether for 180 days at a stretch and is believed to be the first in contract staking.
Contract Staking Is Rising
The decision by both traders and investors to move their funds into contract staking has to do with the slump in price as a result of the market correction, which has seen most of the coins lose a substantial part of their value by 60%.
The move is to find a solution to the risks that make them lose a greater part of their assets, and it seems to have been the perfect move as the solution allows them to earn interest in exchange for the funds they provide. Contract staking appears to be the newfound solution to the systematic risks associated with most cryptocurrencies because investors put their funds to use to earn passive income from the proceeds of the interest their funds accumulate.
According to the crypto tracking firm Nansen, the total amount of ETH deposited into the contract staking is a modest 1.9 million with an actual number of 30,600 deposits.
On the other hand, the huge deposits made earlier are made by a wallet belonging to Gnosis. Gnosis is a decentralized system holding up to $30 million and above worth of GNO. The GNO is an Ethereum-based token sold by Gnosis.
Three Arrows Capital, a cryptocurrency hedge fund company, reportedly occupies the second position on the skating contract. Its CEO has previously narrated the changes in the behavior of Bitcoin traders and investors in the market for some time now.
According to the CEO, the cryptocurrency industry is now a long-term investment gateway because more investors now prefer holding on to their assets rather than speculating about pushing prices up.
Ethereum’s Market Performance
Ethereum is currently trading at $2,750, having experienced a 4% increase in price in the last 24 hours to give it a refreshing price appreciation.
In the past couple of weeks, Ethereum has lost about 19% of its value due to the global financial instability that has seen many countries grappling with extreme challenges.
The whales’ involvement in contract staking may become the catalyst for Ethereum to put the previous setbacks behind it by making a market comeback.