Ethereum, the leading smart contract platform, has reached a significant milestone with 25% of its total supply now being staked by validators. This equates to 30 million ETH, supported by 936,849 validators active in the staking process. The influx of staked ETH gained momentum following Ethereum’s Shapella upgrade in 2023, which fully embraced the staking mechanism.
Validator Participation Expands
The staking initiative, operational since a September 2022 upgrade, gained popularity with the Shapella upgrade, which transitioned Ethereum from mining to a validator-based security model. Validators contribute ETH, with the minimum requirement being 32 ETH, to secure the network and are rewarded with an APR ranging from 6% to 15%. Lido Finance (LDO) remains a top choice for staking, commanding a 31.8% market share. The average value of staked ETH is currently $2,022, suggesting a profitable venture for stakeholders.
Despite the initial decrease in ETH stake deposits in January, the trend reversed in the last week of the month. The 14-day moving average net flow surged to 840,263 according to Dune Analytics, signaling an increase in staking interest and confidence in Ethereum’s future potential. On the day the staked supply hit 25%, ETH’s price reached $2,435, a 3.19% increase in 24 hours, hinting at a bullish outlook with potential resistance reversal targets around $2,750. Investors should remain vigilant with their long ETH positions, while those considering short positions must monitor critical price points.
Ethereum Staking Attracts More Investors
The growing staking activity on Ethereum reflects investors’ belief in its long-term value. The positive price movement of ETH, coupled with attractive staking rewards, is drawing more participants to lock in their digital assets. As the network continues to develop, the staking phenomenon is expected to play a vital role in Ethereum’s security and economic model.