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Ethereum (ETH) Staking Ratio Surprisingly Keeps Surging Despite Shapella

Published 01/31/2024, 06:58 PM
Updated 01/31/2024, 07:00 PM
© Reuters Ethereum (ETH) Staking Ratio Surprisingly Keeps Surging Despite Shapella

U.Today - Ki Young Ju, founder and CEO of CryptoQuant, leading on-chain analytical firm, shared his views on the Ethereum (ETH) staking progress. He admits he was wrong about Shapella hard fork's effects.

Ethereum (ETH) staking ratio surges to 24% and counting

Ethereum (ETH) staking ratio, i.e., the percentage of ETH coins locked in staking, reaches 24% and keeps surging. Meanwhile, only 11% of the ETH supply is stored on centralized exchanges. The data was shared by Ki Young Ju on X today, on Jan. 18, 2024.

As such, it is safe to say that the overhyped Ethereum (ETH) upgrade Shapella that allowed stakers to withdraw their coins for the first time since December 2020 did not result in massive unstaking:

Ethereum's (ETH) Shapella was activated in April 2023. As crypto markets were still dominated by bearish sentiment, analysts were expecting withdrawals and consecutive sell-offs of Ethereum (ETH).

The Ethereum (ETH) price also managed to go through this event without significant losses: as stakers withdrew 1 million Ethers (ETH) in first week post-Shapella, the ETH price was fluctuating between $2,000 and $2,100.

Staked Ethereums (ETH) are mostly profitable, Mr. Ki Young Ju adds. While the realized price for staking inflows is $2,014, the current ETH rate is $2,519. As such, the average Ether "stake" is being held with a significant 25% profit.

The aggregated volume of the Ethereum (ETH) staking ecosystem is estimated at a whopping $72 billion, with 4.25% in APY, Staking Rewards data says.

Сardano (ADA) staking close to surpassing Solana (SOL)

At the same time, the largest Ethereum (ETH) competitors might be close to a historic "flippening." The Solana (SOL) staking ratio is plummeting. The indicator lost over 20% in the last week and dipped below 67%.

Meanwhile, the Cardano (ADA) staking ecosystem added 0.06% in the last seven days and is getting closer to 64%. At the same time, the USD-denominated volume of Solana (SOL) staking is over 200% larger than that of Cardano (ADA).

Out of all mainstream altcoins, Mina Protocol (MINA) demonstrates the largest staking ratio: its stakers locked over 91% of the circulating supply.

Aptos (APT) and Sui (SUI) follow the Mina Protocol (MINA) with 85%-86% in staking ratio.

This article was originally published on U.Today

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