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ETH Lock Up

Definition ∞ 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.

A vibrant, abstract digital infrastructure unfolds, centered on a dense cluster of translucent blue and white cuboid nodes, representing a distributed ledger technology core. Numerous individual components, possibly validator nodes or smart contract modules, extend outwards, forming a complex blockchain architecture. Grey and black lines symbolize intricate consensus mechanisms and peer-to-peer connections facilitating transaction throughput. Two smooth white spheres, encircled by grey rings, signify digital assets or tokenized entities within this interconnected, scalable cryptocurrency network.

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Ethereum’s Utility Profile Confirmed: One Quarter of Supply Locked

Ethereum's circulating supply is twice as active as Bitcoin's, with 25% locked in staking and funds, confirming its utility-driven market.