Ethereum Staking Reaches Milestone
A significant milestone has been reached in Ethereum’s staking, with around 25% of the entire ETH supply, equivalent to approximately 30 million coins, now being staked. This news comes as the price of ETH has increased by 2.8% over the past day and is currently trading at $2,425.
Lido Highlights Staking Achievement
On February 8, Lido, a prominent liquid staking platform, announced that over 30 million ETH had been staked, accounting for a quarter of Ethereum’s circulating supply. Lido holds a 31.5% market share in staked Ethereum, according to Dune Analytics.
25% of the ETH supply is now staked pic.twitter.com/YcZrE1ZOhV
— Lido (@LidoFinance) February 7, 2024
The total value of staked ETH amounts to approximately $73 billion, with nearly a million validators contributing to the network’s security. Recent deposit activity indicates increased interest in Ethereum staking.
Nansen Confirms Staked ETH Figure
Nansen, a blockchain analytics firm, confirms the figure of 30 million ETH staked and notes a minimal unstaking queue. This suggests strong sentiment among holders, with only a small percentage of staked ETH awaiting withdrawal. Nansen also reports that 940,563 validators are enhancing the network’s security.
Ultrasound.Money Offers Insights
Ultrasound.Money provides a slightly lower figure of 29.8 million ETH staked and highlights Ethereum’s deflationary trend. Since the Merge in September 2022, Ethereum’s supply has decreased by 344,960 ETH, resulting in a nearly $840 million deflation. Additionally, there has been a -0.57% annual inflation rate, and approximately 4,288 ETH, valued at about $10 million, have been burned in the last 24 hours.
ETH Price Shows Positive Performance
The announcement of the staking milestone has had a positive impact on the Ethereum market. Over the week, ETH has experienced a 7.1% increase in price performance, although it still faces resistance levels and remains below its peak in January 2024.
Ethereum is currently trading at half of its all-time high from November 2021. However, the rise of restaking narratives presents opportunities to bridge this gap. Restaking, which allows users to stake ETH across multiple protocols, is gaining momentum. CoinGecko’s introduction of a restaking token category valued at approximately $300 million exemplifies this trend.
The growing interest in Ethereum’s staking ecosystem is evident through notable price surges in restaking tokens like Pendle Finance and Picasso and the success of platforms like EigenLayer.
Hot Take: Ethereum Staking Reaches New Heights
Ethereum’s staking has hit a major milestone with around 25% of the total ETH supply now being staked. This represents approximately 30 million coins and highlights the growing interest and activity in Ethereum staking. The value of staked ETH is estimated at $73 billion, with close to a million validators securing the network.
Meanwhile, the price of ETH has seen a positive uptick, although it still has room for growth to reach its previous all-time high. The emergence of restaking narratives presents opportunities for users to bridge this gap and participate in Ethereum’s staking ecosystem. With the introduction of restaking token categories and the success of platforms like EigenLayer, the interest in Ethereum staking continues to grow.
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