The volume of staked Ether has been steadily increasing since the Shapella upgrade in April and has now surpassed 23 million Ether locked as of June. This represents nearly 20% of the current supply of ETH, amounting to $43.1 billion. In comparison, Solana’s staking ratio is currently at 70.58%.
Staking in the Ethereum blockchain network involves the process of validating transactions. Users stake their native ETH tokens to earn validator status and secure the network, which allows them to earn rewards. The Shapella hard fork, executed on April 12, enabled validators to withdraw their staked Ether from the Beacon Chain, leading to an increase in ETH staking.
Dave Weisberger, CEO of algorithmic-trading platform CoinRoutes, commented on the significance of the Shanghai upgrade, stating, “The Shanghai upgrade essentially eliminated this risk by allowing users to stake and unstake at will. As a result of this de-risking, we’re seeing a surge in staked ether — and, as expected, the network is quickly catching up to rival chains such as Solana in terms of percentage of the native token being staked on the network. This is a very healthy sign for Ethereum.”
The growth of Ether staking has also attracted the attention of regulators, particularly in the United States. The Securities and Exchange Commission (SEC) has been tightening rules for crypto firms offering staking services. In February, crypto exchange Kraken settled with the SEC for $30 million and closed its staking services for U.S. clients. The SEC deemed the service as a securities offer and required the exchange to obtain an appropriate license. Most recently, the SEC took action against Coinbase’s staking program, claiming it was offering securities.
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It is notable that the U.S. is home to the majority of node operators on the Ethereum blockchain, with 48% of all validators located in the country.
The increasing volume of staked Ether reflects the confidence and trust users have in the Ethereum network. Staking provides users the opportunity to earn rewards while contributing to the security and decentralization of the blockchain. As more Ether is locked through staking, it strengthens the network and signals a healthy sign for Ethereum’s future.
Looking ahead, the growth of staked Ether and the continuous development of the Ethereum network bode well for its long-term prospects. The Shapella upgrade has addressed previous limitations and allowed for more flexibility in staking and unstaking Ether. This, coupled with the increasing interest from institutional investors and the ongoing advancements in the Ethereum ecosystem, positions the network for further growth and adoption.
In conclusion, the volume of staked Ether has reached new heights since the Shapella upgrade, with over 23 million Ether locked as of June. This represents a significant portion of the total supply of ETH and indicates the growing confidence in Ethereum’s network. While regulatory challenges remain, the increasing staking activity and support from node operators in the U.S. highlight the resilience and potential of the Ethereum ecosystem. With ongoing developments and advancements, Ethereum is well-positioned for continued growth in the future.
