With Ethereum's triumphant transition from Proof-of-Work to Proof-of-Stake after the Merge, ETH staking has swiftly emerged as a foundational element in the digital asset landscape. This monumental shift has not only enhanced Ethereum's efficiency and scalability but has also ignited renewed interest from institutional capital.
Our research covers the top 7 Ethereum staking statistics and trends for 2023, providing an in-depth look at this essential aspect of the Ethereum network. We'll discuss the rise in staked ETH, the growth of liquid staking derivatives, and where to find the best staked ETH yields.
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1. Over 25 Million Ethereum is Being Staked
As of 8th August, the total amount of Ethereum being staked has surged to over 25 million ETH, a remarkable increase from 19 million in May. This substantial acceleration, representing a 31.6% growth in just a few months, underscores the community's enthusiasm and confidence in the Ethereum network, particularly following the merge that marked a significant transition in the network's architecture.
Furthermore, this staking volume equates to 21% of Ethereum's total supply, roughly 119 million ETH. Such a considerable portion of the entire supply being staked is a testament to the community's deep confidence and commitment to the network.
2. Ethereum Staking Net Flows Surge Since Merge
Following the Shanghai Fork, there has been a net increase of +5,762,481 ETH in staked Ethereum. When accounting for 1 million ETH in outflows, this indicates a massive inflow of 6,762,481 ETH. The Shanghai upgrade, a pivotal event in Ethereum's evolution, allowed users to unstake their Ethereum (ETH) for the first time. Before this upgrade, those who had staked their ETH on the network's proof-of-stake (PoS) Beacon Chain couldn't access or withdraw their assets.
The introduction of the ability to withdraw both staked ETH and the accumulated rewards, as detailed in the EIP-4895 proposal, marked a significant de-risking in ETH staking. This change has been a testament to the community's bolstered confidence in Ethereum's staking mechanism after the Shanghai Fork.
3. Lido Has 31% Market Share for Ethereum Staking
Lido, a leader in liquid staking, has firmly established its dominance in the Ethereum staking market. With a staggering 7,981,702 ETH staked, Lido commands a 31.7% market share, dwarfing its competitors. Over the past week, Lido has seen a 1% increase in staked ETH, and over the past month, this growth has been 5%. In the last six months, Lido's staking has skyrocketed by 65%, emphasizing its growing influence and the trust it has garnered within the community.
For context, the closest competitor, Coinbase, a centralized exchange (CEX), has staked 2,338,657 ETH, which translates to a 9.3% market share. This is followed by Binance, another CEX, with 1,242,336 ETH staked, holding a 4.9% share. Among the top entities, Lido's growth and dominance are evident, with its 31.7% market share being more than three times that of its nearest competitor.
4. Liquid Staking Derivatives Dominate ETH Staking Market
Liquid Staking Derivatives (LSDs) and Centralized Exchanges (CEXs) both play pivotal roles in the Ethereum staking ecosystem, but their market shares reveal a distinct difference in dominance.
- Liquid Staking Derivatives (LSDs): LSDs have made a significant mark, with a combined staking of approximately 9,238,528 ETH. Lido is the dominant player in this category, staking a massive 7,981,702 ETH, which translates to 86.44% of the entire LSD market. Other entities in the LSD category also contribute (e.g. Rocket Pool and Frax Finance), but Lido's dominance is unparalleled.
- Centralized Exchanges (CEXs): Conversely, CEXs have staked about 4,866,773 ETH. Among them, Coinbase leads the pack with 2,338,657 ETH staked, capturing 47.56% of the CEX market. Other exchanges like Binance and Kraken also have significant stakes, but when compared to LSDs, CEXs stake considerably less ETH in total.
5. Most Ethereum Was Staked at $1,900 USD
A deep dive into Ethereum staking data reveals a significant trend: most ETH was staked when the price was around $1,900 USD. Specifically, a substantial 5.5 million ETH was staked at this price point, making it the average price at which Ethereum holders chose to stake their assets.
To provide context, while there are various price buckets where Ethereum has been staked, ranging from as low as $500 to as high as $4,700, the $1,900 price bucket overwhelmingly stands out. For comparison, the next highest amount staked at a specific price is 1,561,922 ETH at $600. The dominance of the $1,900 bucket underscores the confidence and strategic decisions of Ethereum holders during that particular price window, marking it as a pivotal moment in Ethereum's staking history.
6. Coinbase has the Most Staked ETH for Centralized Exchanges
Among Centralized Exchanges (CEXs) involved in Ethereum staking, Coinbase stands out as the undisputed leader. They've staked an impressive 2,338,657 ETH, accounting for 47.56% of the ETH within the CEX category.
Following Coinbase, Binance has staked 1,242,336 ETH, while Kraken has contributed 802,081 ETH to the staking pool. While Binance and Kraken hold significant stakes, Coinbase's contribution is unparalleled, reinforcing its premier position in the staking arena among centralized platforms.
7. Ethereum Staking Pools are the Smallest Entities
Ethereum staking pools, while smaller in scale compared to other staking entities, play a pivotal role in the staking ecosystem. Leading the pack is Figment, which has staked 1,056,096 ETH, capturing a 29.82% market share among staking pools. Following closely are Staked.us and Kiln, with market shares of 18.62% and 17.50%, respectively.
Despite their relatively smaller staking volumes, these pools are integral to Ethereum's decentralized ethos. They offer diverse staking options and ensure that the network remains secure and robust, highlighting the importance of varied participation in the Ethereum staking landscape.
8. DeFi Delivers Superior Ethereum Staking Yields
DeFi protocols are emerging as the top Ethereum staking platforms when it comes to yields. Leading the charge is Lido's STETH, boasting a 30-day average percentage yield (APY) of 3.97% on a substantial staked amount of $14.882 billion. Following Lido, Rocket Pool's RETH and Coinbase Wrapped Staked ETH (CBETH) offer competitive yields of 3.85% and 3.54%, respectively.
However, regarding the highest yields, Frax Ether (SFRXETH) stands out with an impressive 5.23% 30-day APY on a staked amount of $456.65 million. Other notable high-yield platforms include Bifrost Liquid Staking's VETH with a 6.74% APY and Hord's HETH at 5.92%. These DeFi platforms underscore the lucrative opportunities within the Ethereum staking ecosystem, offering attractive returns for stakeholders.
What is Ethereum Staking?
Ethereum staking is part of Ethereum's transition to a proof-of-stake (PoS) consensus mechanism. Instead of relying on energy-intensive mining, as in proof-of-work, users lock up ("stake") their Ethereum (ETH) to become validators. These validators process transactions and secure the network. In return, they earn rewards. While 32 ETH is typically required to run a validator node, there are pooled staking options allowing multiple users to combine their ETH. This PoS approach aims to enhance scalability, lower transaction fees, and reduce energy use.
If you are interested in estimating your rewards, you can use our Crypto APY Calculator.
The Ethereum network's evolution from Proof-of-Work to Proof-of-Stake has ushered in a transformative era in the world of digital assets. With a staggering 25 million ETH actively staked, reflecting a robust 31.6% growth since May 2023, the community's confidence in Ethereum's potential is evident.
Our research meticulously unpacks the top 7 staking trends this year, spotlighting Lido's unparalleled dominance in the liquid staking domain, the significant inflows post the Shanghai Fork, and the enticing yields presented by DeFi platforms. As Ethereum forges ahead on its sustainable PoS path, staking stands out as not just a strategic investment avenue but also a testament to the community's commitment to a decentralized future.