Staked Ethereum Hits $45B; Representing 20% of Circulating Supply
- Close to 24 million Ether is locked up among 744,000 validators.
- Lido accounts for roughly 32% of all staked ETH due to its user-friendly staking model.
On Monday, the total amount staked hit about $45 billion, representing nearly 20% of all Ethereum in circulation. This landmark achievement perfectly encapsulates the growth of Ethereum.
Tokens are pledged to the network so that they will remain secure in exchange for financial compensation. According to a dashboard built by the user hildobby on Dune Analytics, as of right now, close to 24 million Ether is locked up among 744,000 validators who process transactions.
Ditched Proof-of-work
To verify transactions and earn transaction fees, validators on the Ethereum blockchain must stake at least 32 ETH. This proof-of-stake consensus methodology is used by a number of blockchains, including Ethereum.
After considerable anticipation, Ethereum finally made the switch to proof-of-stake from proof-of-work in September of last year. Proof-of-work is an energy-intensive procedure employed by networks like Bitcoin. And until an update in April of this year made it possible, staked Ethereum couldn’t be withdrawn for months.
Moreover, before the critical Shanghai update that allowed staking withdrawals, around $29 billion worth of Ethereum, or 14.5 percent of ETH in circulation, was staked.
This significant accomplishment on Monday highlights Ethereum’s progress toward a consensus approach that is eventually more environmentally friendly.
When it comes to staking Ethereum, the most popular option is Lido Finance, the biggest liquid staking protocol on the crypto market. According to Dune, it accounts for roughly 32% of all staked Ethereum due to its user-friendly staking model (any amount of ETH may be staked in return for a staked Ethereum token, or “stETH”).
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
