Ethereum Staking Defies Odds with Record 25% Supply Locked


In the world of cryptocurrency, the practice of staking Ethereum (ETH) has seen a remarkable surge, intriguingly defying the downtrend of ETH prices over the past twelve months. Liquid staking protocols, with Lido Finance at the forefront, have witnessed a continuous increase in the amount of ETH staked. This enduring commitment to staking has propelled the total staked supply to unprecedented heights.

Notably, an impressive 25% of the entire ETH supply now lies in staking contracts. This milestone was recently highlighted by Lido Finance, which presented evidence from a Dune Analytics dashboard confirming the 25% threshold had been surpassed.

The dashboard from Dune Analytics further reveals a steady upward trajectory in staking, with 25.08% of ETH supply now staked across a network bolstered by 924,023 Ethereum validators.

Contrary to speculative belief, the net flow of ETH to staking contracts remained positive even post the anticipated Shanghai upgrade. The upgrade was significant for it granted stakers the long-awaited ability to withdraw their staked ETH. However, rather than initiating a surge of withdrawals, the outcome was an influx of more ETH into staking contracts.

Post-upgrade statistics from Dune Analytics show an inflow of over 10 million ETH into staking contracts. The total staked amount has now soared past 30.14 million ETH, with no signs of slowing down.

At the helm of Ethereum staking is Lido, commanding a substantial 31.52% of all staked ETH, as accounted for by Dune Analytics. This dominance is underpinned by Lido’s sizable network of over 297,000 validators, affirming the platform’s leading status in the staking arena.

Trailing Lido is the renowned exchange Coinbase, which is responsible for 14.4% of total staked ETH through its 136,000 validators. With Lido and Coinbase combined, they steer a formidable 45% of the staked ETH market, establishing a significant advantage over their competitors.

In the third spot stands the exchange Binance, handling 4.3% of all staked ETH, supported by 41,000 validators. Following behind are Kiln, Figment, and Rocket Pool, ranking fourth, fifth, and sixth, respectively, each controlling between 2.8% and 3.3% of the total staked ETH.

The rewards distributed thus far to Ethereum stakers have been notably prosperous. Lido stakers alone have amassed over 467,000 ETH, with Coinbase and Binance stakers earning 259,000 ETH and 139,000 ETH respectively.

Coinciding with this upward trend in staking, the ETH price has found a bullish rhythm, overcoming the $2,400 resistance barrier. According to CoinMarketCap data, it has risen by 2.22% in the last day, boasting a 7% increase over the last week, further energizing the Ethereum staking narrative.


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