Ethereum Staking: Investors Lock Up 20% of ETH Tokens
Investors have committed almost 20% of all ETH tokens to lock up in staking contracts, according to blockchain data. Here are the key points:
– Investors have deposited 23.9 million ETH to Ethereum’s staking network, accounting for approximately 20% of the token’s 120 million supply.
– Ethereum’s Shanghai upgrade, which allowed withdrawals from its proof-of-stake network, sparked increased demand for staking.
– Deposits have exceeded withdrawals by 4.5 million ETH since the upgrade, worth $8.4 billion.
– However, the pace of inflows has slowed due to regulatory scrutiny on centralized exchanges, such as Binance and Coinbase, which were sued by the SEC for offering unregistered securities with their staking services.
– The waiting time to establish new validators has decreased to 36 days, but it still affects the effective annualized yield.
Hot Take: Decentralized Staking Solutions Gain Traction
As investors grow cautious about centralized staking services, decentralized solutions like Rocketpool and Lido are gaining popularity. These protocols have seen significant growth in staked assets, outpacing major exchanges like Coinbase and Binance. This shift towards decentralization reflects investors’ concerns about regulatory risks and the need for greater control over their staked assets. While the waiting time for new validators has decreased, it remains a challenge for investors, potentially impacting inflows. Overall, the Ethereum staking landscape is evolving, with investors seeking more secure and decentralized options.
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