On-chain data recently showed that the Ethereum staking has experienced significant growth over the last month. This undoubtedly presents a bullish outlook for the Ethereum ecosystem, which is already oozing with a lot of bullish sentiment heading into July.

Almost 60,000 Unique Depositors Join Ethereum Network

Data from the on-chain analytics platform CryptoQuant shows that 59,894 new depositors have joined ETH’s staking network since May 20. Interestingly, this significant increase began around the time Bloomberg analysts James Seyffart and Eric Balchunas increased their approval odds for the Spot Ethereum ETFs to 75%.

This again highlights the Spot Ethereum ETFs’ positive impact on ETH, although they haven’t begun trading. Thanks to these funds, the network has achieved a 4% increase in staking participation in just over a month. Increased staking participation is bullish for ETH, making the network more decentralized.

Furthermore, the increase in the number of new depositors will also reduce ETH’s already dwindling circulating supply since these depositors have to lock up a significant amount of ETH to become validators on the network. Data from Dune Analytics shows that over 33 million ETH is locked up, representing almost 28% of Ehereum’s total supply.

ETH’s Supply Side Paints A Bullish Picture

A reduction in Ethereum’s circulating supply is a bullish fundamental since it helps reduce the impact of any potential selling pressure on the crypto token. The positive impact of these locked-up tokens also becomes more evident as the demand for Ethereum increases since ETH’s price will bow to the dynamics of supply and demand.

ETH’s distribution also paints a bullish picture for the crypto token. Data from the market intelligence platform IntoTheBlock shows that about 78% of ‘s supply, including staked ETH, is held by long-term holders, those who have been holding the crypto token for over a year.

This shows that Ethereum’s supply is concentrated in the hands of individuals who are unlikely to offload their holdings anytime soon. This is significant, considering institutional investors are set to increase ETH’s demand once the Spot Ethereum ETFs begin trading. These funds are expected to start trading this month.

Balchunas recently suggested that these Spot Ethereum ETFs could begin trading soon after July 8. Balchunas and Seyffart had previously predicted that these funds could begin trading by July 2. However, Balchunas noted that the Securities and Exchange Commission (SEC) had taken extra time to get back to the Spot Ethereum ETF issuers, so they had to change their timeline for when these funds would launch.

Bitwise’s Chief Investment Officer Matt Hougan recently predicted that these Spot Ethereum ETFs could attract $15 billion in their first 18 months of trading.

At the time of writing, ETH is trading at around $3,470, up over 2% in the last 24 hours, according to data from CoinMarketCap.