Staking Craze Continues on Ethereum

Since the upgrade, validators have been able to contribute to network security by staking their Ethereum. As of the current location, the total amount of ETH staked has increased and is currently at a record level. Almost four months after Ethereum transitioned to a proof-of-stake network, it reached a major milestone. According to Crypto Quant, over 15.9 million ETH has been staked on the Ethereum Beacon Chain. This happened in 2020, nearly two years after Ethereum’s staking contract was introduced, the network’s proof-of-stake Beacon Chain.

Examining other tables, such as the Staking Inflow total table, revealed some interesting findings. The documented staking flow recorded a significant increase at the beginning of the week, surpassing 69,000, the most significant level since November 2022. January has a higher entry overall than December of the previous year. While this is not a large amount, the chart showed a steady stream of new depositors. Ethereum is trading at about $1,590 at the time of writing. Since the beginning of January, the value of the cryptocurrency has increased by 33%, as evidenced by the current price level. One reason for the increase in staking could be a price increase similar to what Ethereum has seen recently.

However, the situation was matched by the perception that the Shanghai upgrade is imminent, which will allow the withdrawal of staked ETH. As an incentive, it is stated that staking payments will increase in response to a significant withdrawal of ETH when the withdrawal feature is enabled. Staking rewards for ETH may decrease as more cryptocurrencies are staked. On the other hand, staking ETH through a centralized exchange or a staking pool will likely result in reduced earnings due to validator fees payable. The only time this is different is when centralized exchanges use promotional strategies to increase reward APYs above on-chain rates to attract staking market share.