Ethereum Staking Gains Momentum as ETH Supply Staked Reaches All-Time High

Ethereum Staking Gains Momentum as ETH Supply Staked Reaches All-Time High

Despite the underperformance of the Ethereum (ETH) price over the past year, there has been a significant uptick in Ethereum staking. The emergence of liquid staking protocols like Lido Finance has played a key role in driving the surge of ETH being staked. As a result of this growing interest, the total percentage of ETH supply that has been locked in staking contracts has recently crossed the 25% mark. This milestone was highlighted by Lido Finance, which shared a screenshot from a Dune Analytics dashboard that displayed the achievement. The dashboard further reveals that the figure has continued to climb, with 25.08% of the total ETH supply currently being staked.

Contrary to expectations, net flows of ETH have been positive since the Shanghai upgrade, allowing stakers to withdraw their staked ETH. Instead of witnessing mass withdrawals, however, there has been an influx of ETH into staking contracts. According to Dune Analytics, over 10 million ETH has flowed into staking contracts since the upgrade. Consequently, the total amount of ETH staked has reached a staggering 30.14 million and is steadily increasing. Among the various staking platforms, Lido’s platform leads, accounting for approximately 31.52% of all staked ETH. With over 297,000 validators on the protocol, Lido Finance has cemented its position as the largest Ethereum staking platform. Coinbase follows closely behind, representing 14.4% of the total ETH staked, with more than 136,000 validators. Together, Coinbase and Lido Finance currently dominate 45% of the staked ETH market, providing them with a significant advantage over other platforms. Binance, another prominent crypto exchange, ranks third with 4.3% of all staked ETH and 41,000 validators. Kiln, Figment, and Rocket Pool occupy the 4th, 5th, and 6th positions, respectively, controlling between 2.8% and 3.3% of the total staked ETH.

Ethereum stakers have reaped considerable rewards since the inception of the staking initiative. Lido stakers have earned a total of more than 467,000 ETH, while Coinbase stakers have earned 259,000 ETH, and Binance stakers have earned 139,000 ETH. Concurrently, the Ethereum price has turned bullish, surpassing the resistance level at $2,400. In the last day alone, it has climbed by 2.22%, and over the past week, it has gained 7% according to CoinMarketCap. This positive price momentum has contributed to the overall profitability of Ethereum staking and further enticed investors to participate in the endeavor.

Ethereum staking has surged despite the downward movement of the ETH price in recent times. The rise of liquid staking protocols, such as Lido Finance, has fueled the growing interest in staking ETH. This, in turn, has resulted in a new all-time high of the proportion of ETH supply being staked, surpassing the 25% mark. Surprisingly, net flows have favored staking contracts, with millions of ETH being deposited instead of withdrawn. Lido Finance leads as the largest Ethereum staking platform, followed by Coinbase and Binance. The rewards offered by staking have been substantial, with Lido stakers, in particular, earning significant amounts of ETH. Coupled with the bullish performance of the ETH price, Ethereum staking continues to gain momentum and attract more participants in the crypto market.


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