Over $115 Billion of Ether Staked on Ethereum’s Beacon Chain
More than 31.5 million ether has been staked on Ethereum’s proof-of-stake consensus layer, the Beacon Chain, reaching a total value of $115 billion. This represents nearly 26% of its total supply, with 980,000 individual validator stakes involved.
The recent surge in ether staking can be attributed to the Shapella upgrade in April 2023, which allowed users and validators to withdraw their staked ether. Following the upgrade, over 11 million ETH was staked, contributing to the significant increase in staked assets.
Lido Finance validators currently account for more than 31% of the total ETH staked, indicating a substantial portion of Ethereum’s market cap of $440 billion. This underscores the level of economic security provided by Ethereum’s proof-of-stake network.
In proof-of-stake networks, economic security is of utmost importance. The theory is that to attack the network, an entity would need to control at least half of the total validator stake, which amounts to $57 billion. This significant financial hurdle makes such attacks economically impractical.
The introduction of liquid staking solutions like Lido and Rocket Pool has made staking even more accessible. These solutions allow for the staking of amounts less than 32 ETH and enable the use of staked assets as collateral in decentralized finance (DeFi) applications.
In conclusion, the value of ether staked on Ethereum’s Beacon Chain has surpassed $115 billion, highlighting the growing popularity and economic security of the network. The Shapella upgrade and the introduction of liquid staking solutions have further contributed to this trend, making staking more accessible and versatile for users and validators alike.
Analyst comment
Positive news: The value of ether staked on Ethereum’s Beacon Chain has reached over $115 billion, indicating growing popularity and economic security. This surge in staking can be attributed to the Shapella upgrade and the introduction of liquid staking solutions, making it more accessible and versatile. As a result, the market is expected to remain strong and the network more secure.
