Staked ETH hits 20M milestone, almost doubling in 1 year

$38 billion is currently being used to stake ETH

article-image

Spyro the Dragon/Shutterstock modified by Blockworks

share

Ethereum has reached another milestone, with over 23.5 million ETH deposited for staking. 

Staking is the process of locking up a cryptocurrency in a proof-of-stake blockchain to contribute to network security and earn rewards. 

Similar to depositing cash into high-yield accounts at big banks, staking enables token holders to earn passive income on their assets without having to sell or trade them. 

The more people who stake, the more secure the blockchain becomes.

ETH price is heavily dependent on its value against the US dollar. In November 2021, when the price of ETH reached an all-time high of $4,400, there had only been 8.2 million staked ETH — which is roughly $15 billion — locked in the network. 

Currently, with ETH priced at $1,880, over $38 billion is being used to secure the network.

Although validators have had the opportunity to stake ETH since the Ethereum Merge in September last year, staking didn’t grow dramatically in popularity until the Shapella upgrade, which enabled withdrawals.

There has been a net inflow of 3.6 million staked ETH ($6.9 billion) following the Shanghai upgrade, showing that interest in the Ethereum blockchain has remained at an all-time high. 

The total circulating supply of ether is currently at 120.2 million ETH, and staked ETH makes up roughly 19.4% of all the ether on-chain. That is equivalent to roughly 6.4% of bitcoin’s market capitalization fully staked in Ethereum.

In fact, staked ETH is becoming so popular, that the raw number of ETH staked on the Ethereum blockchain is about to surpass the total amount of ether that is kept on all cryptocurrency exchanges.

The growing interest in Ethereum staking is a positive sign for the network, and indicates that ETH holders are moving away from centralized entities and into more decentralized spaces.

Updated Jun. 25, 2023 at 5:01 pm ET: Corrected rate of change in headline.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. What you can expect: And more! Don’t miss out on the opportunity to be in the room when the future of crypto is decided. Join us and help shape the future of our […]

recent research

Research report - cover graphics-2.jpg

Research

Base has doubled-down on its commitment to the Superchain vision, has shown early signs of success with nearly $400M in TVL, and has become home to novel dapps such as friend.tech which has seen significant traction.

article-image

The bitcoin halving slated for April 2024 — an event expected to spur upward price action for BTC — could be a boon for Block’s stock price, analysts say

article-image

Seed Club founder Jess Sloss is excited to “open the doors and let other people see what we’ve been seeing for the last few months”

article-image

Blockchain is a “natural fit” in games based on open economies and user-generated content, says Wyatt

article-image

Their current stance is a half-baked attempt that could stifle innovation and burden an emerging industry

article-image

Maker’s DeFi-focused “subDAO” passed a proposal activating a lending market for DAI on the Gnosis Chain

article-image

Certain creditors could be repaid sooner, with one hedge fund exec telling Blockworks it expects a payout by the end of the year