Key Points
- Over 31.5 million ether, equivalent to $115 billion, is now staked on Ethereum’s Beacon Chain.
- Notable factors contributing to the surge in ether staking include the Shapella upgrade and the introduction of liquid staking solutions.
The Beacon Chain, Ethereum’s proof-of-stake consensus layer, now holds more than 31.5 million ether, which totals to a staggering $115 billion.
This amount represents roughly 26% of the total ether supply, with over 980,000 individual validator stakes involved.
Impact on Ethereum’s Market Cap
The recent increase in the price of Ethereum (ETH), currently standing at $3700, has pushed the value of total staked assets beyond $115 billion. This forms a significant part of Ethereum’s $440 billion market cap, highlighting the magnitude of Ethereum’s economic security.
In proof-of-stake networks such as Ethereum, which moved to PoS with The Merge, economic security is vital. The theory is that to launch an attack on the network, for example, to reverse transactions or initiate a double-spend attack, an entity would require control of at least half of the total validator stake, or $57 billion. This financial requirement presents a substantial barrier, making such attacks economically unfeasible.
Factors Influencing the Surge in Ether Staking
The spike in ether staking was significantly impacted by the Shapella upgrade in April 2023, which permitted users and validators to withdraw their staked ether. This led to an influx of over 11 million ETH being staked post-upgrade.
The advent of liquid staking solutions such as Lido and Rocket Pool has further encouraged staking by allowing for the staking of amounts less than 32 ETH and enabling the use of staked assets as collateral in DeFi. Validators from Lido Finance currently represent over 31% of the total ETH staked.
