Originally published on: October 08, 2024
Tokenholders have shown strong interest in Ethereum by staking almost a third of the total Ether supply, signaling their long-term commitment to the crypto asset and the potential rewards it offers.
According to data from IntoTheBlock, as of October 8, 28.9% of all Ether has been staked. This marks a significant increase from January, when only 23.8% of ETH was being staked, indicating a 5.1% growth in staked Ether over the past 10 months.
IntoTheBlock also reported that 15.3% of the staked ETH has been locked up for more than three years. This data is seen as a positive sign of long-term confidence in the future of Ethereum and the potential growth of the network.
Despite the growing interest in staking Ether, the price of the crypto asset has faced some challenges in recent months. While ETH reached a yearly high of over $4,000 in March, it has since experienced a 40% drop, with its price currently hovering around $2,400.
Experts attribute the recent price decline to sell pressure from initial coin offering participants and a lack of demand for spot Ether exchange-traded funds. This bearish sentiment led to a 12% drop in ETH’s price between October 1 and October 3, erasing gains made in the previous weeks.
Ethereum co-founder Vitalik Buterin has shown support for lowering the minimum requirements for solo staking. Buterin recently participated in a discussion about solo staking, emphasizing the need to make staking more accessible to a broader range of investors.
Currently, investors looking to stake ETH on their own need to hold a minimum of 32 Ether, which is equivalent to almost $80,000. Buterin acknowledged that this high barrier to entry could deter many investors from participating in staking activities.
As the Ethereum network continues to evolve and attract more users, the staking of Ether is expected to play a significant role in securing the network and driving its growth in the long run.
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