Swiss state-owned PostFinance bank now offers ETH staking – Here’s what it means

Staking‘s rise not only aids in securing networks by incentivizing honest behavior, but also affects market liquidity. With more assets staked, there’s less immediate selling pressure, potentially stabilizing or even increasing asset prices over time.

However, this also introduces new considerations for market dynamics. Especially since staked assets might not be immediately available for trading, affecting market depth and volatility.

Implications on fortunes of holders

Staking fundamentally changes holder behavior by providing a passive income stream, which encourages long-term holding over speculative trading. For holders, this means potentially higher returns over time without the need for active trading.

On-chain data showed a significant portion of ETH being staked since the merge. Therefore, supply available on exchanges for short-term trading has fallen. This lock-in effect could lead to an appreciation in asset value as fewer coins chase the same market cap.

These staking service could further this trend by offering an accessible entry point for less tech-savvy investors to participate in staking. This could broaden the staking community and potentially enhance the fortunes of those who commit to long-term holding Ethereum.