One-Quarter of Ethereum’s Circulating Supply Now Staked, Marking a Significant Milestone
A major milestone has been achieved in Ethereum staking, as 30 million ETH, representing 25% of the total supply, has been staked. This announcement was made by Lido, a leading liquid staking platform, on February 8th. According to Dune Analytics, Lido now holds a 31.5% market share in staked Ethereum, with a total value of approximately $73 billion. This significant increase in staking flow deposits over the past two weeks indicates a growing interest in Ethereum staking. Nansen, a blockchain analytics firm, has also confirmed the figure of 30 million ETH staked, noting a virtually empty unstaking queue. This suggests a strong holding sentiment among stakers. Ultrasound.Money provides a slightly lower figure of 29.8 million ETH staked, but highlights the deflationary trend in Ethereum’s economy since the Merge in September 2022. Ethereum’s supply has contracted by 344,960 ETH, resulting in a deflation of nearly $840 million. The market has responded positively to these developments, with a 2.6% increase in Ethereum’s price over the past day and a 6.8% uptick over the week. However, resistance levels remain, and the asset is still below its peak in January 2024. Restaking, which allows users to stake the same ETH across multiple protocols, is gaining traction. CoinGecko’s introduction of a restaking token category, valued at around $300 million, reflects this trend. The success of platforms like EigenLayer and the significant price increases in restaking tokens like Pendle Finance and Picasso further demonstrate the growing interest in Ethereum’s staking ecosystem.
