Ethereum's staking activity has reached a new all-time high, reflecting growing confidence in the network's stability and future. Right now, more than 34.6 million ETH, worth almost $90 billion dollars, is locked into Ethereum’s PoS system. Now this milestone is an important indicator of the growing usage, participation, and long-term commitment to the Ethereum network.
Ethereum moved to a Proof-of-Stake (PoS) consensus mechanism last summer. According to BeaconChain data, staked Ether now represents almost 28% of the total supply of ETH. That adds up to around 120.72 million ETH.
ETH is currently priced at $2,574. That’s a 2% increase just for the day and a 4.5% rise over the last month! Market analysts view the rapid uptick in staking activity as a powerful indicator of the network’s health. They hope it’s indicative of future growth to come.
There are a few key reasons behind the current staking boom. Indeed, the emergence of liquid staking technologies and amplified buy-in by institutions have needlessly complicated the matter. The Pectra update—released about a month ago—is to blame. It is the largest by far such fork since The Merge.
"extreme confidence in the Ethereum network’s durability" - Davis Richardson, Managing Partner at Paradox Public Relations
Except as Amir Forouzani, co-founder of Puffer Labs, points out, yield-bearing derivatives are another driver. Very briefly, liquid staking tokens (LSTs) and liquid restaking tokens (LRTs) enable the holders of LSTs to continue earning yield on their ETH. This void enables them to participate in leverage and looping strategies on lending protocols, greatly multiplying their returns.
