In a major milestone for the Ethereum network, the amount of ETH staked for staking purposes has reached 20 million, more than doubling since the beginning of the year. Staking is a process where cryptocurrency is locked in a proof-of-stake blockchain to contribute to network security and earn rewards, and it has gained significant popularity among ETH holders.
By staking their ETH, token holders can generate passive income without the need to sell or trade their assets. The surge in staked ETH indicates the growing interest in decentralized spaces and represents a shift away from centralized entities.
Staking has become a crucial factor in securing the Ethereum network, with the value of staked ETH heavily influencing its price against the US dollar.
According to The Source Currently, the network holds over $38 billion worth of staked ETH, showcasing the significant investment being used to safeguard the blockchain. Notably, this amount is set to surpass the total ETH held on all cryptocurrency exchanges, highlighting the increasing popularity of staking on the Ethereum blockchain.
The rise in ETH staking can be attributed to the Shapella upgrade, which introduced the ability to make withdrawals and led to a surge in popularity. Since the implementation of the upgrade, there has been a net inflow of 3.6 million staked ETH, equivalent to approximately $6.9 billion, demonstrating sustained interest in the Ethereum blockchain.
Currently, staked ETH accounts for approximately 19.4% of the total circulating supply of ether, which amounts to around 6.4% of Bitcoin's market capitalization fully staked in Ethereum.
The growth of staked ETH has not only contributed to network security but also brought about positive implications for the Ethereum ecosystem. By participating in staking, token holders actively contribute to the blockchain's overall security and decentralization. As more people stake their ETH, the network becomes more resilient against potential attacks and manipulation.
The Ethereum network's growth and the increasing popularity of staking highlight the continued interest in decentralized finance (DeFi) and its potential for generating passive income.
As more individuals recognize the benefits of staking their ETH, the Ethereum network becomes more robust and resilient, paving the way for further innovation in the world of decentralized applications and financial services.
Overall, the milestone of 20 million staked ETH marks a significant achievement for the Ethereum network. The continued growth of staking demonstrates the confidence and enthusiasm of ETH holders in contributing to network security while earning passive income.
As the Ethereum ecosystem continues to evolve, the increasing popularity of staking and the anticipation surrounding the Shanghai upgrade signify a promising future for the network and its community of stakeholders.