Ethereum Hits Milestone: 25% of Circulating Supply Staked

Ethereum Hits Milestone: 25% of Circulating Supply Staked

Ethereum’s Staking Milestone: Ethereum achieves a significant milestone in its staking ecosystem, with 25% of its total circulating supply, equivalent to approximately 30 million ETH, now staked.

Lido Announcement: On February 8, Lido, a prominent liquid staking platform, declared the milestone achievement of over 30 million ETH staked, representing a quarter of Ethereum’s circulating supply.

Market Share and Value: Dune Analytics reports Lido’s market share in staked Ethereum at 31.5%, with the total value of staked ETH reaching approximately $73 billion. Nearly one million validators contribute to the network’s security.

Increased Staking Activity: Recent weeks have seen a notable increase in staking flow deposits, indicating heightened activity and growing interest in Ethereum staking among investors.

Unstaking Queue and Holding Sentiment: Nansen confirms the 30 million ETH staked figure and observes a virtually empty unstaking queue, suggesting strong holding sentiment among investors, with only a minimal percentage of staked ETH awaiting withdrawal.

Deflationary Trends and Price Response: Ultrasound.Money notes Ethereum’s deflationary trend since the Merge in September 2022, with a contraction in supply and a -0.57% annual inflation rate. This development, along with 4,288 ETH burned in the last 24 hours, contributes to Ethereum’s positive price response, with a 2.6% increase over the past day and a 6.8% uptick over the week.

Restaking Narratives and Market Dynamics: The emergence of restaking, allowing users to stake ETH across multiple protocols, gains traction, reflected in CoinGecko’s introduction of a restaking token category valued at approximately $300 million. Significant price surges in restaking tokens like Pendle Finance and Picasso underscore the expanding interest in Ethereum’s staking ecosystem.

Conclusion: Ethereum’s achievement of staking 25% of its circulating supply marks a significant milestone, highlighting the growing adoption and robustness of its staking ecosystem. With increased activity and innovative developments in restaking narratives, Ethereum’s staking landscape continues to evolve, presenting potential opportunities for investors and further strengthening the network’s security and stability.

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