"The cryptocurrency world is forever playing the song of ice and fire: on one side, $4 billion in ETH is retreating, while on the other, institutions are frantically betting on the future."

The data from the Ethereum PoS network revealed by the image represents one of the most magical reality scripts in the recent cryptocurrency market—846,000 ETH (about $4 billion) are queued to exit staking, while 404,500 ETH are waiting to enter. This scene of 'ice and fire' exposes the most genuine contradictions in the market: some are cashing out at the top, while others are investing heavily in the future.

Institutions are voting with real money.

The recent large-scale accumulation of ETH and staking by SharpLink Gaming and BitMine Immersion (source: CoinDesk) directly confirms the data of 'new funds entering' shown in the image. The former is a NASDAQ-listed gaming company, while the latter is a Bitcoin mining giant; their actions serve as a barometer of institutional sentiment—when traditional companies begin to use crypto assets to hedge against inflation, this wave of staking is far from over.

Exit ≠ bearish, entry ≠ chasing highs.

The $4 billion in ETH that are retreating essentially represent the 'profit harvesting' of early stakers. In 2021, the staking cost for ETH was mostly between $1,000 and $2,000, while the current price is above $3,400, making cashing out a rational choice. But the new institutions entering are smarter: they are betting on Ethereum's upcoming 'native staking yield' upgrade (EIP-7514), which will increase the staking annual yield from the current 3.5% to over 5%.

History always seems remarkably similar.

Before the 2023 Shanghai upgrade, there was a significant spike in ETH staking exits, but after the upgrade, the total amount staked actually broke through a new high of 30 million ETH. What does this indicate? Short-term profit-taking clears the way for long-term capital. Now a similar plot is unfolding, and this time with the dual catalysts of the Fed's interest rate cut expectations and the approval of Ethereum ETFs.

Which side are you on?

Are you following the $4 billion retreating army to cash out, or are you betting on the staking upgrade dividends that institutions are optimistic about? In the next issue, we will delve into 'how to achieve passive income through staking strategies in a bull market.'

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