ETH Lock Up refers to the process of staking Ethereum (ETH) tokens to support the security and operation of the Ethereum 2.0 blockchain, now known as the Beacon Chain. Participants commit their ETH for a specified period, earning rewards for their contribution to network validation. This action removes ETH from active circulation.
Context
ETH Lock Up is a significant metric closely watched in crypto news, as it impacts the liquid supply of Ethereum and indicates participant confidence in the network’s future. The increasing amount of ETH locked up can contribute to supply scarcity, influencing market dynamics and the asset’s price trajectory.
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