Over 25% of Ethereum Supply Now Staked
For the first time, more than a quarter of the ether supply on the Ethereum network has been staked. This milestone comes almost a year after the Ethereum Shapella upgrade, with the total amount of staked ETH exceeding 30.1 million, valued at approximately $73 billion.
When including ether awaiting staking in the network’s queue, the percentage of staked ETH surpasses 25% of the total supply, represented by 942,023 individual validator stakes.
Ether Staking Surges Post-Shapella
Following the Shapella upgrade in April 2023, ether staking experienced a significant surge. This upgrade allowed users and validators to withdraw their staked ether on the network for the first time. Since then, there has been a net flow of 10.25 million ETH staked.
The availability of liquid staking solutions such as Lido and Rocket Pool has contributed to this increase by making the staking process easier. These solutions also enable staking of less than 32 ETH while unlocking the value of staked assets for use in decentralized finance (DeFi) as collateral.
Lido Dominates Ether Staking
Lido Finance validators currently account for more than 31% of ETH stakes. There have been concerns about this concentration affecting the network’s decentralization and security. However, users have the option to switch to alternative staking solutions, similar to miners changing mining pools in proof-of-work blockchains.
Hot Take: Ether Staking Reaches New Milestone
The Ethereum network has reached a significant milestone with over 25% of its supply now being staked. This demonstrates growing interest and participation in the staking process, fueled by upgrades and the availability of user-friendly staking solutions. While rewards have decreased due to increased participation, the overall growth in staked ETH showcases the confidence and commitment of users to the Ethereum network.
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