Ethereum Staking Doubles In A Year, Investors Flock To Proof-Of-Stake: Report

The amount of Ethereum ETH/USD being staked witnessed a significant surge, doubling in just a year with about 25% of all available Ethereum currently staked, up from 11% a year ago as of Sept. 22, 2023, according to a report.

This rise in staking activities underscored the growing interest and trust in the Ethereum network's proof-of-stake mechanism.

This development will likely be a topic of discussion at Benzinga's Future of Digital Assets conference on Nov. 14, when industry experts will delve into the evolving landscape of digital assets and the future implications of such trends.

Data from Nansen stated Lido LDO/USD remained the dominant player in the staking arena, holding approximately 29% of the total staked Ethereum, despite experiencing a slight 2% decline from the previous year.

While Lido's dominance was evident, other entities such as Figment and Rocket Pool also marked their growth in the staking space.

Notably, Rocket Pool more than doubled its share in liquid staking, jumping from 2.48% to 5.52% within the year.

On the exchange front, major platforms such as Coinbase Global Inc COIN, Kraken and Binance BNB/USD saw minor declines in their staked Ethereum percentages. In contrast, OKX increased its staking activities.

Also Read: Sam Bankman-Fried's Latest Bail Plea: Strict Monitoring, Communication Restrictions

When focusing on liquid staking, Lido's share among players grew from 47% to 53%.

The combined share of the three major exchanges decreased from 45% to 37%.

Excluding these central exchanges, Rocket Pool's share in liquid staking impressively rose from 4.8% to approximately 9.3%.

However, it's not all rosy in the staking world.

The majority of the staked Ethereum, priced at $1.8-1.9k, was currently not yielding profits.

A staggering 82% of the staked Ethereum is worth less than its value from a year ago, indicating potential challenges for stakeholders and emphasizing the volatile nature of cryptocurrency investments.

Read Next: Fhenix Secures $7M Funding, Aims To Bolster Privacy On Public Blockchains

Meet and engage with transformative Digital Asset and Crypto business leaders and investors at Benzinga's exclusive event: Future of Digital Assets. Tickets are flying: Get yours!

Photo: Shutterstock