Ethereum Staking Reaches 25% Milestone
Approximately 25% of the entire ETH supply, equivalent to around 30 million coins, is now being staked, marking a significant milestone for Ethereum. Liquid staking platform Lido has a 31.5% market share in staked Ethereum, with a total value of approximately $73 billion. This surge in staking activity indicates increased interest and engagement in Ethereum’s staking ecosystem.
Strong Sentiment Among Ethereum Holders
Nansen, a blockchain analytics firm, confirms the figure of 30 million ETH staked and notes a nearly empty unstaking queue. This suggests a strong sentiment among holders, with only a small percentage of staked ETH awaiting withdrawal. Additionally, 940,563 validators are contributing to the network’s security.
Ethereum’s Deflationary Trend
Ultrasound.Money provides a slightly lower figure of 29.8 million ETH staked and highlights Ethereum’s deflationary trend. Since the Merge in September 2022, Ethereum’s supply has decreased, resulting in nearly $840 million deflation. Furthermore, there is a -0.57% annual inflation rate, and approximately $10 million worth of ETH was burned in the last 24 hours.
ETH Price Surges Following Staking Milestone
The announcement of the staking milestone has had a positive impact on the price of ETH. Over the past week, ETH has experienced a 7.1% increase in price performance, although it still faces resistance levels and remains below its peak from January 2024. However, the emergence of restaking narratives and platforms presents opportunities to bridge this price gap.
Restaking Gains Momentum in Ethereum Ecosystem
Restaking, which allows users to stake ETH across multiple protocols, is gaining momentum in the Ethereum ecosystem. CoinGecko recently introduced a restaking token category valued at approximately $300 million. The success of platforms like EigenLayer and notable price surges in restaking tokens such as Pendle Finance and Picasso further highlight the increasing interest in Ethereum’s staking landscape.
Analyst comment
Positive news. The milestone of 25% ETH staking indicates growing interest and engagement in Ethereum’s staking ecosystem. The strong sentiment among holders and the deflationary trend contribute to market optimism. The price surge of ETH and the momentum gained by restaking suggest potential for bridging the price gap and further growth in the Ethereum ecosystem.
