ETH staking was first launched on the Ethereum network about two years ago when the transition to Proof of Stake officially began. Since then, the amount of ETH staked in the network has increased. By 2021, total ETH staked on the Ethereum network will exceed 5% of the total supply in circulation. Even though it’s already grown a lot, it doesn’t compare to the growth the network experienced last year.
ETH double staked
The amount of ETH staked on the Ethereum network has grown by over 100% year-on-year. Staking now accounts for over 13.4 million of his total ETH and more than 11% of total supply. This growth comes in spite of the fact that staking can be risky, but the team is on track to inject new interest into users.
There have been several rumors about how all of the ETH wagered will be dumped on the market. . Rather, he has a period of 6-12 months before the feature is introduced. But even this remains uncertain, as there is no clear timeline for when the withdrawal will take effect.
Staked ETH doubles in one year | Source: Arcane Research
With interest growing, the yield for staking ETH has dropped significantly to around 4%, and is expected to continue to drop as more validators are created. This yield is still the biggest attraction for the staker as it provides a means for him to passively earn ETH while waiting for the market.
Ethereum Validators May Explode
Currently, the Ethereum network already has hundreds of thousands of validators, but the majority of ETH is unstaked. This means that we can still expect a lot of growth in terms of staked ETH, and his recent Glassnode report points this out.
ETH trending at $1,554 | Source: ETHUSD on TradingView.com
The report shows that the number of addresses holding 32 or more coins has reached an all-time high. This is important. Because you need a total of 32 ETH to become a validator on the Ethereum network and earn rewards for helping confirm transactions on the network. This means that more and more users are qualified as validators.
An interesting fact is that although the price of Ethereum has fallen by about 51% year-on-year, the digital asset has retained most of the gains from the merger announcement. ETH is currently priced at $1,595 with a 24 hour growth rate of 0.75%.
Featured image from The Coin Republic, charts from Arcane Research and TradingView.com
follow Best Owie on Twitter Market insights, updates, the occasional funny tweet…