ethereum staking reaches a major milestone as 25% of the total eth supply, around 30 million eth, has now been staked.
On February 8, Lido, a leading liquid staking platform, announced that over 30 million eth have been staked, representing a quarter of ethereum's circulating supply.
According According to Dune Analytics, this milestone was reached, positioning Lido with a 31.5% market share in staked ethereum. The total value of staked eth amounts to approximately $73 billion, and nearly one million validators contribute to the security of the network.
Over the past two weeks, there has been a notable increase in staking flow deposits, indicating increased activity and interest in ethereum staking.
Nansen, another blockchain analysis company, ai/public/dashboards/Hk93n66vsO0uvycfui8ypF2xcpNhpraxfwX5AWZJ” target=”_blank” rel=”noopener”>confirm the staked figure of 30 million eth and notices the practically empty withdrawal queue. This suggests strong holding sentiment, with only 176,686 eth, less than 0.6% of the total staked, waiting to be withdrawn.
Ultrasound.Money also provides a slightly lower figure of 29.8 million eth at stake, but it highlights an important aspect of ethereum's economics. Since the merger in September 2022, ethereum supply has contracted by 344,960 eth, translating into a deflation of nearly $840 million. This deflationary trend is further evidenced by an annual inflation rate of -0.57%, with 4,288 eth, worth about $10 million, burned in the last 24 hours.
The ethereum market has responded positively to these developments, with a 2.6% price increase over the past day. ethereum price performance for the week shows a 6.8% rally, although resistance levels loom and the asset is still below its January 2024 peak.
<img decoding="async" width="898" height="495" src="https://crypto.news/app/uploads/2024/02/ETH_1D_graph_coinmarketcap-1.png” alt=”ethereum Achieves Staking Milestone with 25% of Circulating Supply Now Staked – 1″/>
ethereum is currently trading at half of its all-time high from November 2021, but staking and staking narratives present potential to narrow this gap.
Restoration, which allows users to stake the same eth across multiple protocols, is gaining traction. CoinGecko's introduction of a recovery token category, now valued at around $300 million, reflects this trend. Significant price increases in buyback tokens like Pendle Finance and Picasso, along with the success of platforms like EigenLayer, highlight the growing interest in the ethereum staking ecosystem.
