In June, the amount of Ether staked on the Ethereum network reached a new milestone, surpassing 23 million Ether. This significant increase in staked ETH comes after the Shapella upgrade in April, which has been instrumental in driving the growth of Ethereum’s staking ratio.
According to data from Nansen, an analytics firm, the total amount of staked Ether as of June 27 was 23.3 million ETH, equivalent to approximately $43.1 billion. This represents nearly 20% of the current supply of ETH, which stands at $220 billion. In comparison, Solana (SOL) currently has a staking ratio of 70.58%.
Staking on the Ethereum Blockchain
Staking on the Ethereum blockchain involves the process of validating transactions. Users stake their native ETH tokens to earn validator status and help secure the network, receiving rewards in return. The Shapella hard fork, completed on April 12, allowed validators to withdraw their staked Ether from the Beacon Chain. This upgrade has significantly contributed to the growth of staked ETH.
The elimination of risks associated with staking and unstaking through the Shanghai upgrade has led to a surge in staked Ether. As a result, the Ethereum network is quickly catching up to competing chains like Solana in terms of the percentage of the native token being staked. Analysts perceive this trend as a positive development for Ethereum’s overall health.
Regulatory Attention and Uncertainty
Regulators have also taken notice of Ether’s staking activity, particularly in the United States. The Securities and Exchange Commission (SEC) has tightened regulations pertaining to crypto firms offering staking services. Kraken, a cryptocurrency exchange, settled with the SEC for $30 million in February, leading to the closure of its staking services for U.S. clients. The SEC considered these services as securities offerings and required the exchange to obtain an appropriate license. Recently, Coinbase’s staking program faced similar action from the regulator.
It is worth noting that a significant portion of Ethereum’s node operators are based in the United States, accounting for 48% of all validators. The uncertain regulatory environment raises questions about the future of staking in the U.S.
Overall, Ethereum’s staked ETH surpassing 23 million marks a major milestone for the network. With the Shapella upgrade and increased adoption of staking, Ethereum aims to strengthen its position in the blockchain landscape.