Ethereum staking defies market trends with robust growth in 2024 Ethereum staking defies market trends with robust growth in 2024
Over 60% of Ethereum stakers are in profit despite the asset's price challenges.
2 min read
Updated: Oct. 8, 2024 at 9:21 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Ethereum staking continues to grow this year despite the emergence of spot exchange-traded funds (ETFs) and the digital asset’s price relative price weakness.
On Oct. 8, blockchain analytics firm IntoTheBlock reported that Ethereum staking rose by 5.1% this year, with 28.89% of the total ETH supply now staked, up from 23.8% in January.
Dune Analytics data estimates that there are currently around 37.79 million ETH staked, worth approximately $84.8 billion, contributed by over one million validators. IntoTheBlock also reports that 15.3% of this staked ETH has been locked for at least three years, reflecting strong investor confidence in Ethereum’s long-term potential.
Despite the rise in staked ETH, Ethereum’s price growth has been modest compared to competitors like Solana. While Ethereum’s price is up about 6% year-to-date to $2,447, Solana has surged 41% in the same period.
Staking profitability
Staking, which involves locking up ETH to validate transactions in exchange for rewards, is central to Ethereum’s proof-of-stake (PoS) system. This process has attracted both institutional and retail investors, offering them the chance to earn yields on their staked ETH.
Dune Analytics data shows that about 60% of stakers are in profit, despite the asset’s price challenges. The realized price for staked ETH is around $2,265, while its current market price is $2,432, translating to a 7% profit margin for stakeholders.
Lido, a leading liquid staking platform, holds the largest share of Ethereum staking, with 9.7 million ETH staked, valued at roughly $24 billion at current prices.
Among centralized staking providers, Coinbase leads with 11% of the total stake, holding over 4 million ETH. Binance, which offers lower commissions, controls 4.75%, or 1.6 million ETH. Other platforms, such as Ether.fi, Kiln, Figment, and Kraken also hold significant market shares. Altogether, centralized exchanges account for 18.5% of the Ethereum staking market.
Recently, Ethereum co-founder Vitalik Buterin suggested lowering the minimum ETH requirement for solo staking. If implemented, this move could attract more participants and further contributing to the growth.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Kraken
Kraken is a San Francisco-based digital asset exchange in euro volume and liquidity that trades various currencies, including Canadian dollars, US dollars, British pounds, and Japanese yen.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Vitalik Buterin stands as the pioneering force behind Ethereum, a transformative community-driven platform that fuels the cryptocurrency ether (ETH) and underpins a myriad of decentralized applications.