Ethereum (ETH) has shown unexpected resilience in its staking rate, surpassing 24% of the total supply, according to CryptoQuant founder and CEO Ki Young Ju.
This comes despite initial expectations of a significant decrease in the staking rate after the implementation of the Shapella hard fork.
Ethereum’s Shapella hard fork was activated in April 2023, allowing stakers to withdraw their coins for the first time since December 2020.
Contrary to forecasts, the staking rate continues to increase.
Ki Young Ju admitted his surprise, as he expected considerable unstaking activity after Shapella, but the data shows that the trend is opposite.
$ETH staking now at 24% of total supply, with only 11% on exchanges.
Tbh, I expected significant unstaking activities after the Shapella upgrade, but the staking rate is still increasing.https://t.co/igWBQsJW8e pic.twitter.com/w8VoBV54PW
— Ki Young Ju (@ki_young_ju) January 18, 2024
Currently, 24% of the total ETH supply is locked in staking, while only 11% is held on centralized exchanges.
This fact underlines investors continued confidence in Ethereum’s staking potential, even after the implementation of major upgrades.
It is interesting to note that, despite expectations of massive withdrawals and possible sales after the hard fork, the price of Ethereum managed to stay between $2,000 and $2,100 after stakers withdrew 1 million ETH in the first week post-Shapella.
This data highlights the strength and stability of the cryptocurrency amid important events.
Ethereum staking profitability also highlighted in the analysis
With an average price of $2,014 for staking entries and the current price of ETH at $2,510, the average profit for those participating in staking is 25%.
This shows that Ether stakers have experienced significant profits during this period.
The staking ecosystem is also presented as one of the most robust, with an estimated aggregate volume of $72 billion and an annual return of 4.25%.
Regarding competition, a possible historical reversal (“flippening”) is observed between Ethereum and its main competitors.
The Solana (SOL) staking rate has seen a 20% decline in the last week, falling below 67%.
Meanwhile, Cardano (ADA) is close to overtaking Solana, with a staking rate approaching 64%.
Ethereum has not only resisted post-Shapella unstaking expectations, but has demonstrated a steady increase in the staking rate, highlighting investors confidence in its future.
This phenomenon, along with profitability and competition with other cryptocurrencies, puts Ethereum in a strong position in the competitive cryptocurrency market.
