jidasounish
@jidasounish
Ethereum 2.0's staking mechanism requires users to lock a certain amount of ETH in smart contracts to participate in network consensus. A large amount of ETH is thus locked up, reducing the circulating supply in the market. With the circulating supply decreased, under the condition of constant or increasing demand, the law of supply and demand comes into play, which tends to drive up the price of ETH. Moreover, through staking, investors can obtain additional rewards, which encourages more people to hold ETH, further increasing the demand for it.
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