US debt ceiling and declining confidence in banks. This resulted in a record high stake in ETH.

Amount of Ether Staked in May It hit a new all-time high of 2.96 million ETH, or about 2.46% of the total supply.

The massive increase in ETH stakes comes after a month of the Shapella upgrade on April 12th, allowing validators to withdraw ETH stakes after being locked out for over two years. At the time, many believed this could hurt ETH prices, however, ETH was sold at roughly 1% stake after Shapella.

A week after Shapella discovered that nearly a million ETH had been withdrawn by a validator from Beacon Chain, however, as of early May, the amount of ETH staked had already exceeded the withdrawal amount.

The increase in Ethereum stake in May was due to a number of factors. But the most prominent factors are the US debt ceiling issue, US dollar sentiment, bank collapse, and high APR on ETH stakes, as expected by research analyst Brian McColl.

“The US Debt Ceiling Epic and the previous incident that the bank went bankrupt It definitely affects the popularity of Ether, and more and more users prefer to stake their money in ETH instead of keeping it in a bank.”

Joe Biden and U.S. House of Representatives Majority Leader Kevin McCarthy agreed to raise the $31.4 trillion debt ceiling. However, financial experts, including BlackRock CEO Laurence Fink, have warned that debt ceiling drama could “settle in on the $31.4 trillion debt ceiling.” As a result, global confidence in the US dollar has decreased.

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