Ethereum (ETH) has reached a significant milestone, with 24% of its total supply now staked. This development reflects a growing tendency among ETH holders to prioritize earning passive income through staking rather than selling their assets for immediate price appreciation.
This shift highlights the holders’ increasing confidence and commitment to the network’s future. Especially, after recent advancements such as the Shapella upgrade.
Ethereum Holders Prefer Staking
One of the most anticipated features of the Shapella upgrade was the introduction of withdrawal functionality for staked Ethereum. This change allowed validators and stakers to withdraw their staked ETH along with the accrued rewards.
Before this upgrade, ETH staked on the Ethereum 2.0 Beacon Chain was locked without a mechanism for withdrawal. This is even after the transition to Proof-of-Stake in the Merge upgrade.
CryptoQuant CEO Ki Young Ju recently commented on this feature, which has added liquidity and flexibility for holders in the staking process.
“I expected significant unstaking activities after the Shapella upgrade, but the staking rate is still increasing,” Ju said.
Despite the new functionality allowing stakers to withdraw their tokens, Ethereum’s staking market cap has soared to $72.75 billion. More than 28.8 million ETH tokens are currently staked, representing 24% of the total supply. The network also boasts a robust base of 898,110 active validators.
These figures demonstrate the widespread adoption and trust in Ethereum’s Proof-of-Stake mechanism.
Read more: Staking Crypto: How to Stake Coins and Grow Your Income
Author: Bary Rahma
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