Ethereum Staking Reaches All-Time High: Investors Show Confidence Amidst Price Slump

Ethereum Staking Reaches All-Time High: Investors Show Confidence Amidst Price Slump

Despite the downward trajectory of the ETH price in recent times, Ethereum staking has witnessed a remarkable increase. A prominent player in the liquid staking space, Lido Finance, has observed a surge in the amount of ETH being staked, leading to a record high supply being locked. Notably, the total percentage of ETH supply staked has surpassed the 25% mark, signifying growing interest in this form of investment.

Lido Finance, sharing a snapshot from a Dune Analytics dashboard, revealed that the 25% milestone had been achieved. Subsequently, the percentage continued to climb, currently standing at 25.08% of the total ETH supply being staked. This substantial figure is supported by the operation of 924,023 Ethereum validators on the network.

Surprisingly, net flows have contradicted expectations, with positive trends emerging since the Shanghai upgrade. The upgrade allowed stakers to withdraw their staked ETH, leading to predictions of mass withdrawals. However, what has transpired is increased inflow into staking contracts, defying initial forecasts.

According to Dune’s data, over 10 million ETH have flowed into staking contracts following the Shanghai upgrade. This significant inflow has contributed to the current total of 30.14 million ETH staked. Remarkably, a significant portion of this figure is staked through Lido Finance. The Dune Analytics platform accounts for 31.52% of total staked ETH, further cementing Lido’s position as the largest Ethereum staking platform.

While Lido Finance holds a dominant position in the staking market, other players are striving to establish themselves. Coinbase, a renowned platform, follows closely behind Lido, accounting for 14.4% of total staked ETH with over 136,000 validators. The combined market control of Coinbase and Lido Finance reaches an impressive 45%, providing them with a significant advantage.

Binance, a prominent crypto exchange, secures the third position in the market, controlling 4.3% of all staked ETH and garnering support from 41,000 validators. Kiln, Figment, and Rocket Pool occupy the 4th, 5th, and 6th positions, respectively, with a share ranging from 2.8% to 3.3% of the total staked ETH.

Investors engaging in Ethereum staking have reaped considerable rewards since the inception of this initiative. Lido stakers, for instance, have earned over 467,000 ETH, while Coinbase and Binance stakers have earned 259,000 ETH and 139,000 ETH, respectively. Notably, these rewards align with the bullish turn of the ETH price, which has surged past the resistance level at $2,400. In the last 24 hours alone, ETH price has witnessed a 2.22% increase, with a remarkable 7% gain in the past week.

It is worth emphasizing that this article is purely educational and should not be considered as investment advice. NewsBTC does not offer recommendations regarding buying, selling, or holding any specific investment. As with any form of investment, Ethereum staking carries inherent risks, and individuals are strongly advised to conduct thorough research before making any investment decisions. Any reliance on the information provided in this article is solely at the reader’s own risk.

Overall, despite the challenging market conditions and the decline in the value of ETH, Ethereum staking has gained significant traction. The increasing percentage of ETH supply being staked, the substantial inflow of ETH into staking contracts, and the rewards earned by stakers demonstrate the confidence investors have in this form of investment. As the market evolves, it will be interesting to see how these trends unfold and whether Ethereum staking continues to attract more participants in the future.


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