Golden Finance reported that according to Cointelegraph, the amount of staked Ethereum has reached a record high of 34.65 million ETH, accounting for nearly 30% of the current circulating supply. The soaring of this data highlights that the appeal of Ethereum under the Proof of Stake (PoS) mechanism is increasing day by day.
Since Ethereum completed its transformation from Proof of Work (PoW) to Proof of Stake (PoS), staking has become an important way for ETH holders to participate in network maintenance and earn profits. Users can become validators by staking ETH on the Ethereum network, helping to confirm transactions and create new blocks in exchange for corresponding ETH rewards. Staking not only enables participants to obtain potential economic returns, but also contributes to the security and decentralization of the Ethereum network.
The significant increase in the amount of ETH staked also reflects the enhanced confidence of the market in the Ethereum ecosystem. As Ethereum continues to upgrade and improve, key measures such as the Shanghai Upgrade have provided more flexibility for stakers, for instance, allowing stakers to withdraw their staked ETH and rewards. This has further encouraged more investors to join the staking ranks.
From the perspective of pledge methods, investors nowadays have multiple options. They can either choose to run the verification node by themselves and directly participate in staking, but this requires a certain amount of technical knowledge and a capital threshold of at least 32ETH. You can also stake through a staking pool or a cryptocurrency exchange, which is more convenient. On some platforms, you only need to stake 0.01ETH to participate. Liquidity staking protocols like Lido have gained favor among many investors because they offer liquidity solutions that allow users to stake ETH while also using the liquidity tokens representing the staked ETH in the market. Currently, they have occupied a considerable market share.
The amount of Ethereum staked this time has reached a record high, which has multiple implications for the Ethereum ecosystem. From the perspective of network security, more ETH being staked means that the network has stronger security guarantees and can resist potential attacks and malicious behaviors. From the perspective of market supply and demand, the large amount of ETH being staked has relatively reduced the quantity of ETH available for circulation in the market. Under the condition that demand remains unchanged or increases, this may have a positive impact on the price of ETH and enhance its scarcity.
However, the significant increase in the amount of collateral is not without hidden concerns. As the trend of centralization in staking emerges, for instance, some large staking service providers hold a large amount of staked ETH, this may raise concerns about the degree of network decentralization. Once these concentrated staking forces encounter problems or are maliciously exploited, they may pose a threat to the security and stability of the Ethereum network.
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