Ethereum staking has defied market expectations, experiencing significant growth despite the underwhelming performance of ETH price over the past year. Liquid staking protocols like Lido Finance have witnessed a steady increase in the amount of ETH being staked, resulting in a new all-time high for the total locked supply. An intriguing development reveals that the percentage of ETH supply being staked has now crossed the 25% threshold, as reported by Lido Finance, which shared a screenshot of a Dune Analytics dashboard capturing this milestone.
The Dune Analytics dashboard not only confirms this achievement but also indicates that the staked percentage continues to rise, currently at 25.08% of the total ETH supply. This notable increase in staking is supported by a network of 924,023 Ethereum validators actively participating in the process. Contrary to predictions, net flows have shown a positive trend following the Shanghai upgrade, enabling stakers to withdraw their ETH. Rather than witnessing massive outflows, there has been a considerable influx of ETH into staking contracts. According to Dune’s data, over 10 million ETH have flowed into staking contracts since the upgrade, culminating in a staggering total of 30.14 million ETH staked thus far.
Of the 30.14 million ETH staked, a significant percentage is steered through the Lido platform, which accounts for 31.52% of all staked ETH, as reported by Dune Analytics. This firmly establishes Lido Finance as the foremost Ethereum staking platform, boasting an impressive 297,000 validators on its protocol. Coinbase follows closely behind, with 14.4% of the total ETH staked and over 136,000 validators. Collectively, Lido Finance and Coinbase dominate the staked ETH market, controlling 45%, giving them a substantial advantage over other platforms. Binance, a prominent crypto exchange, occupies the third spot with 4.3% of all staked ETH and 41,000 validators, while Kiln, Figment, and Rocket Pool secure the 4th, 5th, and 6th positions, respectively, holding between 2.8% and 3.3% of the total staked ETH.
Rewards and Market Outlook
Ethereum stakers have reaped substantial rewards since the inception of the initiative. Lido stakers, in particular, have earned an impressive 467,000 ETH, followed by 259,000 ETH earned on Coinbase and 139,000 ETH earned by Binance stakers. Furthermore, the price of ETH has demonstrated a bullish trend, overcoming resistance at $2,400. Recent data from CoinMarketCap indicates a 2.22% increase in the last 24 hours, accompanied by a 7% gain in the past week.
The surge in Ethereum staking has defied market expectations, exhibiting remarkable growth even in the face of a stagnant ETH price. Platforms like Lido Finance, Coinbase, and Binance have emerged as significant players, controlling substantial portions of the staked ETH market. As rewards continue to entice investors, the future of Ethereum staking appears promising. However, it is crucial to conduct thorough research and exercise caution when making investment decisions. As with any investment, risks are inherent, and individual due diligence is essential. The rise of Ethereum staking signifies a shift in the crypto landscape, unlocking new potential and offering investors a unique opportunity to participate and benefit from one of the most influential blockchain networks in existence.