Long-term holders buy more as prices drop? Ethereum 2.0 staking contract sees over $560 million worth of ETH deposited in the past two days

Despite the less than ideal performance of the cryptocurrency market over the past week, with a drop of over 50% from its peak, many have begun to doubt whether the bull market can continue. However, despite the recent price volatility, it seems not to have affected long-term investors.

Price Decline, Increase in Locked Amount

According to on-chain data, from early May to present, the amount of Ether in staking contracts has increased by 1.066 million, currently valued at around $2.66 billion. Nearly one-fifth of the Ether was transferred in the past two days, with approximately 220,000 Ether deposited in the contract between the 25th and 27th, worth over $560 million. The rapid growth in the balance of contract addresses in the past two days can be seen from the chart below.

Currently, there are a total of 5.16 million Ether participating in staking (total value of $13 billion), accounting for about 5% of the current total supply.After participating in ETH staking, the unlocking time will be determined based on the progress of ETH 2.0 development, and the lock-up period may exceed two years with no early redemption. In other words, these staked Ether will be excluded from market circulation during the staking period and cannot be sold.

The decline in Ether price has not led to a stagnation in staking participation. On the contrary, the slightly upward-sloping curve in the chart above indicates an increasing interest in staking. Although the staking rewards are only about 7%, these participants seem to choose to accumulate more Ether during this downturn and commit to staking for up to two years, showing the confidence of medium to long-term holders in the future development of Ethereum.