TL;DR
- The Ethereum staking market is experiencing significant growth, with over 30 million ETH deposited, valued at nearly $73 million at the current price, representing approximately 25% of the circulating supply.
- Lido Finance leads the staking market with over 9 million ETH deposited, around 32% of the total deposits.
- The merge was crucial for the increase in staking. It also led to a rise in the number of validators.
The Ethereum staking market is experiencing significant growth, according to recent data from analytics firm Nansen. It is reported that over 30 million ETH, valued at close to $73 million at the current price, were deposited in staking. This amount represents approximately 25% of the circulating ETH supply, reflecting a notable increase in user participation in this activity.
Lido Finance stands out as the major player in the Ethereum staking market, with over 9 million ETH deposited, constituting around 32% of the total deposits. However, Lido’s dominance is subject to controversy due to concerns about the centralization of power in the decentralized ETH network. Despite this, its liquid staking model allowed a wide range of investors to participate in staking, as it eliminates the high minimum requirements to become a full validator on the Ethereum network.
The Next Ethereum Update, Dencun, Expected to Be the Major Price Catalyst in 2024
Ethereum’s transition to proof of stake, marked by the merge, was a key factor in the increased staking participation. This historic transition from the proof of work model allowed more users to join the Ethereum network and increase the proportion of ETH staked. Additionally, the number of validators on the ETH network experienced a significant increase since the merge, indicating greater interest and participation in transaction validation on the network.
After the Shapella network upgrade, Ethereum is gearing up for the next update. Dencun was successfully deployed on the Holesky testnet, and its execution on the mainnet is expected to happen soon. Dencun is anticipated to be one of the major price catalysts for ETH this year, and its successful deployment on testnets suggests significant progress towards full implementation.
Regarding the price of Ethereum, there has been a 2.28% increase in the last 24 hours, with the currency trading around $2,425. Despite market volatility, optimism surrounding network upgrades and their impact on ETH price seems to be a key factor in this price increase.
