Demand for Ethereum Staking on the Rise
The use of Distributed Validator Technology (DVT) is gaining traction as more Ethereum validators turn to this innovative solution. SSV.Network, an infrastructure project that supports this technology, has reported that over $150 million worth of ETH is currently locked into staking contracts secured by SSV. The platform has seen significant growth, with over 2,000 validators and approximately 80 operators utilizing its mainnet for DVT-based staking.
New Staking Apps Launch on SSV
SSV.Network has attracted strong demand for its services, supported by the launch of various staking applications that integrate its technology. Some of these apps include Claystack, Metapool, Stake Together, 01Node, StakeStar, and StaFi. To incentivize adoption, the SSV DAO is offering an Annual Percentage Rate (APR) boost of up to 50% for validators using the network or third-party applications. Major staking pools like Lido have also embraced DVT, further driving its adoption.
Growth in the Staking Ecosystem
The liquid staking industry on Ethereum has seen a significant amount of ETH, around $26 billion, locked into protocols like Lido and Rocket Pool. While these protocols offer flexibility for small stakers, there is a risk of centralization due to the use of the same validator sets. DVT addresses this by promoting a more distributed validator set, enhancing decentralization and network security.
Strength in Diversity
The DVT implementation by SSV aims to increase infrastructure diversity, promote uptime, and support a strong network. This open source technology is available for third-party developers to utilize, resulting in the creation of apps catering to specific sections of the staking market. By allowing validators to distribute operations across multiple node operators, DVT enhances network reliability. The SSV DAO oversees the protocol and provides grants to further develop the staking ecosystem.
The Future of Ethereum Staking
Since December, public validators have been able to join SSV.Network and distribute their staking load to various node operators. Node operators, in turn, can earn SSV rewards for providing staking services. While SSV has already experienced impressive growth, the team is confident that the current Total Value Locked (TVL) is just the beginning, as more Ethereum staking operators embrace the benefits of DVT.
Hot Take: The Growing Popularity of Ethereum Staking through DVT
The demand for Ethereum staking secured by Distributed Validator Technology continues to rise. SSV.Network has proven to be a reliable infrastructure project and has attracted a significant amount of ETH locked in staking contracts. With the launch of new staking apps on the SSV mainnet and the support from major staking pools, the staking ecosystem is becoming stronger than ever. DVT is driving decentralization and increasing network security by promoting a more distributed validator set. The growth of SSV.Network is just the tip of the iceberg, as more Ethereum staking operators are expected to embrace the advantages of DVT in the future.
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