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Ethereum’s staking has achieved a significant milestone, with approximately 25% of the entire ETH supply, equivalent to around 30 million coins, now being staked.
Meanwhile, the ETH price has seen a 2.8% increase over the past day and is trading at $2,425.
Ethereum Staking Soars
On February 8, Lido, a prominent liquid staking platform, highlighted that over 30 million ETH, which accounts for a quarter of Ethereum’s circulating supply, had been staked. According to Dune Analytics, Lido has a 31.5% market share in staked Ethereum.
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 close to a million validators contributing to the network’s security. Over the past fortnight, there has been a noticeable increase in deposits for staking, indicating heightened activity and interest in Ethereum staking.
Nansen, another blockchain analytics firm, confirms the 30 million ETH staked figure and observes an almost empty unstaking queue. This suggests a strong sentiment among holders, with only 176,686 ETH, less than 0.6% of the total staked, awaiting withdrawal. The firm also reports that 940,563 validators are bolstering the network’s security.
Ultrasound.Money offers a slightly lower figure of 29.8 million ETH staked but sheds light on Ethereum’s economy. Since the Merge in September 2022, Ethereum’s supply has decreased by 344,960 ETH, resulting in a nearly $840 million deflation. This deflationary trend is further evidenced by a -0.57% annual inflation rate, with 4,288 ETH, valued at about $10 million, burned in the last 24 hours.
ETH Price Surges
Meanwhile, the staking milestone announcement has been met positively in the Ethereum market. Over the week, ETH has seen a 7.1% uptick in price performance, though it faces resistance levels and remains below its peak in January 2024.
Ethereum is trading at half of its all-time high from November 2021. However, the emergence of staking and 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, now valued at approximately $300 million, highlights this trend.
Notable price surges in restaking tokens like Pendle Finance and Picasso and the success of platforms like EigenLayer highlight the growing interest in Ethereum’s staking ecosystem.
The post Ethereum (ETH) Staking Reaches a Massive Milestone: Details appeared first on CryptoPotato.