Ethereum Staking Reaches Milestone with 25% of Circulating Supply Now Staked
Ethereum staking has achieved a significant milestone as over 30 million ETH, equivalent to 25% of the total circulating supply, is now staked. This milestone was announced by Lido, a leading liquid staking platform.
Lido Dominates the Market Share in Staked Ethereum
According to Dune Analytics, Lido currently holds a 31.5% market share in staked Ethereum, with a total value of approximately $73 billion. The network’s security is supported by nearly a million validators contributing to the staking process.
Increase in Staking Activity and Interest
In recent weeks, there has been a noticeable increase in deposits for Ethereum staking, indicating growing activity and interest in the ecosystem.
Strong Holding Sentiment and Deflationary Trend
Nansen confirms the figure of 30 million ETH staked and highlights the virtually empty unstaking queue. This suggests a strong holding sentiment among stakers. Ultrasound.Money reports a slightly lower figure of 29.8 million ETH staked but emphasizes Ethereum’s deflationary trend since the Merge in September 2022.
Positive Market Response and Potential for Price Recovery
The Ethereum market has responded positively to these developments, with a 2.6% price increase in the past day and a 6.8% uptick over the week. Although resistance levels remain, the staking and restaking narratives present potential for narrowing the gap between the current price and its all-time high.
Growing Interest in Restaking Tokens and Platforms
Restaking, which allows users to stake their ETH across multiple protocols, is gaining traction. CoinGecko’s introduction of a restaking token category, valued at around $300 million, reflects this trend. The success of platforms like EigenLayer and price increases in restaking tokens such as Pendle Finance and Picasso further highlight the expanding interest in Ethereum’s staking ecosystem.
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