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08 October, 2024

Ethereum Staking Reaches New High: 28.9% of ETH Supply Locked

08 October, 2024

A significant milestone has been reached in the Ethereum ecosystem. Onchain data provider IntoTheBlock has revealed that a staggering 28.9% of all Ether in circulation is now staked. This surge in staking activity signals a growing confidence in Ethereum’s future and its transition to a Proof-of-Stake (PoS) consensus mechanism.

The rise of staking on Ethereum is directly tied to the network’s successful transition to PoS, also known as the Merge, which occurred in September 2022. With the shift from energy-intensive Proof-of-Work (PoW) mining, staking has become the primary way for users to earn rewards and participate in securing the network. By staking their ETH, users contribute to validating transactions and receive a share of transaction fees in return. The increasing participation in staking demonstrates a strong belief in the long-term stability and value of Ethereum.

The high level of staked ETH also reflects the growing interest in the Ethereum ecosystem. As the platform continues to innovate and attract developers, investors, and users, staking becomes increasingly attractive as a way to engage with the network and earn passive income. This trend further reinforces the position of Ethereum as a leading blockchain platform.