Home NewsEthereum Ethereum’s Milestone: Over 25% of Ether Now Staked

Ethereum’s Milestone: Over 25% of Ether Now Staked

by dave
1 minutes read

Exciting times for Ethereum enthusiasts! For the first time ever, the amount of ether staked on the Ethereum network has breezed past the 25% mark of its total supply. This remarkable achievement comes nearly a year after the transformative Ethereum Shapella upgrade, pushing the staked ether volume beyond 30.1 million ETH, valued at a staggering $73 billion.

The surge in ether staking, especially after the Shapella upgrade in April 2023, has opened up new avenues for users and validators. This upgrade was a game-changer, introducing the ability to withdraw staked ether, contributing to a significant increase in staking activities, with over 10.25 million ETH staked since.

Liquid staking solutions like Lido and Rocket Pool have played a pivotal role in this uptick. They offer the convenience of staking smaller amounts of ether and the innovative use of staked assets as collateral in DeFi, making staking accessible and beneficial for a broader audience.

However, it’s not all sunshine and rainbows. As more people jump on the staking bandwagon, the rewards have seen a dip, decreasing from a high of 8.6% post-Shapella to under 4% now. Despite this, the enthusiasm around ether staking continues to grow.

Lido Finance, in particular, has emerged as a dominant force in the ether staking landscape, commanding over 31% of the stakes. This concentration has sparked discussions about potential impacts on the network’s decentralization and security. Nevertheless, the community remains vibrant, with options for users to explore alternative staking services, akin to miners choosing different mining pools in proof-of-work blockchains.

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