Glassnode examined how the latest trend toward protocol resumption could impact ethereum's role as a monetary asset.
The emergence of EigenLayer and LRT staking protocols increase The eth stake share is 26% of the total supply. Analysts also recorded an increase in overall staked coin growth to 31.4 million ethereum (eth) as of April 13.
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Although a larger amount of eth reduces unvalidated rewards, the total amount of rewards paid could still contribute to inflation if there is a significant amount of assets locked up, Glassnode suggests.
After The Merge, the share of new coins in the total ethereum supply reached 1.01%. During this period, around 3.55% of eth was withdrawn from circulation.
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As a result of the increase in the metric, the level of remuneration for ensuring network security for each validator fell to 3.2% per year.
Furthermore, according to experts, innovations such as MEV, liquid staking, renewal and liquidity renewal have led to an increase in staking needs beyond the original intention. Liquid replenishment protocols account for 27% of the coins sent to the deposit contract.
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As more eth is staked, the effects of inflation begin to affect fewer and fewer holders of the asset. In other words, there is a transfer of wealth to participants who generate additional income by maintaining the security of the network.
Experts noted that over time, the real yield component could make eth ownership less attractive and negate ethereum's role as a monetary asset in the ethereum ecosystem.
Recovery allows users to stake their assets multiple times on the main blockchain and additional protocols. Since the beginning of the year, the restaurant sector has been actively growing.
In early April, the total value locked (TVL) in recovery protocols exceeded $8 billion. The leader was the ether.fi project with 3.2 billion dollars.
