Over $115 Billion Staked on Ethereum’s Beacon Chain

John Darbie
Photo: Finoracle.net

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.

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John Darbie is a seasoned cryptocurrency analyst and writer with over 10 years of experience in the blockchain and digital assets industry. A graduate of MIT with a degree in Computer Science and Engineering, John specializes in blockchain technology, cryptocurrency markets, and decentralized finance (DeFi). His insights have been featured in leading publications such as CoinDesk, CryptoSlate, and Bitcoin Magazine. John’s articles are renowned for their thorough research, clear explanations, and practical insights, making them a reliable source of information for readers interested in cryptocurrency. He actively follows industry trends and developments, regularly participating in blockchain conferences and webinars. With a strong reputation for expertise, authoritativeness, and trustworthiness, John Darbie continues to provide high-quality content that helps individuals and businesses navigate the evolving world of digital assets.