Demand for Ethereum (CRYPTO: $ETH) staking is soaring as investors increasingly seek rewards from cryptocurrencies.
Crypto staking is the process of locking up digital assets to help secure a blockchain network in exchange for rewards such as cash payments or additional digital assets.
Analysts liken cryptocurrency staking to interest earned on a savings account at a bank, or a dividend paid via a stock.
Ethereum staking demand is on the rise, with nearly three million ETH waiting to enter staking, creating an estimated 50-day entry queue, according to market data.
The demand for staking reflects strong long-term confidence in Ethereum despite its price falling nearly 45% this year, say analysts.
Bitmine Immersion Technologies (NYSE: $BMNR), the largest corporate owner of Ethereum in the world, is a big proponent of staking.
The company said recently that it has staked 4,718,677 ETH, which represents over 85% of its total Ethereum holdings.
The staked position has a market value of $7.7 billion U.S. and will generate about $230 million U.S. a year in staking revenue for Bitmine.
At the same time, exchange balances continue to hit record lows, institutional accumulation is growing, and derivatives traders are starting to position for a recovery in Ethereum.
Analysts say these trends suggest that despite the current downturn, long-term conviction in ETH remains solid.
Ethereum is currently trading at $1,665 U.S. per digital token.
