The Ethereum (ETH) network has recently surpassed a major milestone in deposit contract balance thanks to the soaring interest in staking.

Indeed, users have deposited more than 4.4 million ETH since April 12, surpassing $40 billion in deposit contract balance following the Shanghai upgrade, according to the data shared by cryptocurrency analytics platform CryptoRank on May 23.

The Shanghai upgrade was a major milestone for Ethereum, as it introduced a number of new features, including the ability for validators to withdraw their staked tokens.

This has led to a surge in interest in staking, as investors are now able to earn rewards on their ETH without having to lock it up for an extended period of time.

As of May 23, the Ethereum deposit contract balance stood at 22.6 million ETH or $41.1 billion. This represents a sharp move upward since the introduction of the Shanghai upgrade, and it is a clear sign that investors are bullish on Ethereum staking.

The high staking returns are also a major factor driving interest in Ethereum staking. As of May 15, the annualized rate of return for staking ETH stood at 8.76%.

This is significantly higher than the interest rates offered by traditional savings accounts, and it is a major incentive for investors to stake their ETH.

The surge in interest in Ethereum staking is a positive development for the Ethereum network. Staking helps to secure the network and it also provides investors with a way to earn rewards on their ETH. As the Ethereum network continues to grow, it is likely that the demand for staking will continue to increase.

Ethereum price analysis

In the meantime, Ethereum was at press time changing hands at the price of $1,817, recording a decrease of 2.08% in the last 24 hours but a 0.56% gain across the previous seven days as it tries to come back from the 1.30% drop over the past month, as per data on May 24.

The recent price action for Ethereum has been mixed, with the price moving sideways in recent weeks. However, the long-term trend for Ethereum is still bullish, and the recent surge in interest in staking is a positive sign for the future of the network.