Ethereum Staking Hits Record $65B, Signaling Long-Term Investment Shift

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Ethereum Staking Reaches New High of 65 Billion USD

Ethereum staking has reached a new high of 65 billion USD. This represents almost a quarter of the total circulation. According to an analysis of CryptoQuant data, about 29.39 million ETH coins were staked on the blockchain at the time this article was written.

ETH Staking on the Rise Despite Falling Prices

Interestingly, the decision of holders to stake seems to be independent of the price development of ETH. Despite a price drop of ETH in January, the amount of the staked supply increased. This shows that users are more interested in guaranteed, stable returns than in risky market trading.

Will Decreasing Rewards Stop the Influx?

Although ETH staking has gained popularity in recent months, it has lowered staking returns. According to data from Staking Rewards, the average annual reward rate dropped from 5% in early January to 3.54% at the time this article was written. It remains to be seen whether the staking rate will be maintained in the long term as returns continue to fall.

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Change in Perception of ETH

The liquid supply of ETH, intended for active trading, has decreased in the last two years according to CryptoQuant. A shift of capital from trading to staking suggests that the second largest cryptocurrency is increasingly being perceived as a long-term investment.

Sources: CryptoQuant, Staking Rewards

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