Ethereum 2.0 staking has experienced remarkable growth, achieving a significant milestone. The deposit contract for staking Ethereum on the Beacon Chain has reached a new record high of 47.36 million ETH this week. This accounts for approximately 33.9% of the total Ethereum supply, showcasing the increasing interest in staking within the Ethereum community.
Data provided by the crypto analytic platform Santiment indicates a substantial increase from two years ago when the stake only represented 10.9% of the supply. This remarkable growth demonstrates a strong surge in participation in Ethereum 2.0 staking, more than tripling its share over the past two years.
Furthermore, Santiment highlighted the redistribution of ETH across various wallet tiers. Wallets holding over 10 million ETH, which are associated with the Beacon Deposit Contract, have significantly increased their share by 23% of ETH’s total supply during the same period. Conversely, other wallet categories have experienced a decline, with wallets holding between 10K and 100K ETH (excluding the Beacon Deposit Contract) decreasing by 5.3%, and wallets with 10K or less ETH decreasing by 17.7%. This shift indicates a growing engagement in Ethereum 2.0 staking among larger holders.
Despite the rising trend in staking participation, data suggests that both staking reward rates and inflation rates have surprisingly decreased. The reward rate, which signifies the annual percentage return for staking ETH, has decreased. This means stakers will receive fewer new ETH per staked token in the short term. However, the reduced inflation rate implies that the overall ETH supply is expanding at a slower pace. This could potentially have a positive impact on ETH’s long-term value.
The decrease in reward rates and inflation rates emphasizes the changing dynamics within the Ethereum ecosystem as more users engage in staking activities. This shift could have implications for the future value and sustainability of Ethereum as a leading cryptocurrency.
In conclusion, the surge in Ethereum 2.0 staking and the record-breaking number of ETH staked in the Beacon Deposit Contract reflect a growing confidence in the Ethereum network and its future potential. As the ecosystem continues to evolve, it will be interesting to see how these developments shape the overall landscape of Ethereum and the broader cryptocurrency market.