What are the benefits of staking ETH and how does it affect its price?

1 answers

• Jan 10, 2022 · 3 years ago
  Staking ETH is a popular way to earn passive income in the cryptocurrency space. When you stake your ETH, you lock it up in a smart contract and participate in the network's consensus mechanism. This helps to secure the network and validate transactions. In return for your contribution, you earn rewards in the form of additional ETH. The more ETH you stake, the more rewards you can earn. Staking also has a positive effect on the price of ETH. As more people stake their ETH, the circulating supply decreases, which can create a supply-demand imbalance. This imbalance can potentially drive up the price of ETH as the demand for it increases. So, staking ETH not only allows you to earn passive income but also has the potential to increase the value of your holdings.
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