• Ethereum’s staking activity reached an all-time high, with the total value of ETH staked in the ETH 2.0 deposit contract reaching 16,042,407 ETH.
• The number of validators on ETH network increased by 0.61% over the seven-day period, while the revenue from transaction fees shot up by almost 24%.
• The percentage of eligible tokens that were being staked stood at 13.87%, significantly lower than other popular chains like Cardano [ADA] and Solana [SOL].
Ethereum’s staking activity has been on a steady rise, with the total value of ETH staked in the ETH 2.0 deposit contract reaching an all-time high of 16,042,407 ETH. This was revealed by data from Glassnode, indicating a substantial increase since 6 January when developers announced that the Shanghai Upgrade, which will enable the withdrawal of staked ETH, will go live in March 2023. Despite a 1.3% drop observed in ETH’s price at the time of writing, the king of altcoins has made a remarkable recovery since the FTX contagion hit the crypto market, sprinting towards its pre-FTX market cap levels.
The bullish cycle has also led to an increase in the number of validators on the ETH network, which grew by 0.61% over the seven-day period, as per data from Staking Rewards. The annualized reward rate, or the reward that validators can expect to earn per year was estimated at 3.8%. The revenue from transaction fees also shot up by almost 24%, further lending credence to the lucrativeness of ETH staking.
However, the percentage of eligible tokens that were being staked stood at 13.87%, significantly lower than other popular chains like Cardano [ADA] and Solana [SOL] which had a staking ratio of over 70%. This suggests that there is still room for growth in ETH staking, particularly since whales have shown interest in ETH as the number of transactions witnessed a surge.
Overall, Ethereum’s staking activity has seen a substantial increase, reaping the rewards of its impressive recovery. As the Shanghai Upgrade and other developments go live, the number of validators and the value of ETH staked are likely to continue to grow, as whales continue to show interest in the king of altcoins.