Ethereum (ETH) Staking Rate Surprisingly Still Rising Despite Shapella
U.Today: Ki Young Ju, founder and CEO of CryptoQuant, a leading on-chain analytics company, shared his views on the progress of staking (ETH). He admits that he was wrong about the effects of the Shapella hard fork.
Ethereum (ETH) Staking Rate Rises to 24% and Counting
The Ethereum (ETH) staking rate, i.e. the percentage of ETH coins locked in staking, reaches 24% and continues to rise. Meanwhile, only 11% of the ETH supply is stored on centralized exchanges. The data was shared by Ki Young Ju on X today, January 18, 2024.
As such, it's safe to say that the overhyped Ethereum (ETH) Shapella upgrade, which allowed bettors to cash out their coins for the first time since December 2020, did not result in a massive betting withdrawal:
Ethereum (ETH) Shapella went live in April 2023. As crypto markets were still dominated by bearish sentiment, analysts were expecting back-to-back Ethereum (ETH) withdrawals and sell-offs.
The price of Ethereum (ETH) also managed to overcome this event without significant losses: when bettors withdrew 1 million Ethers (ETH) in the first week after Shapella, the price of ETH fluctuated between $2,000 and $2,100.
Staked Ethereums (ETH) are mostly profitable, adds Ki Young Ju. While the realized price of capital inflows is $2,014, the current rate of ETH is $2,519. As such, the average Ether “stake” remains at a significant 25% gain.
The aggregate volume of the Ethereum (ETH) staking ecosystem is estimated at a whopping $72 billion, with 4.25% in APY, according to data from Sumbling Rewards.
Cardano (ADA) is close to overtaking (SOL)
At the same time, Ethereum's (ETH) biggest competitors could be close to a historic “turnaround.” Solana (SOL) share ratio is plummeting. The indicator lost more than 20% in the last week and fell below 67%.
Meanwhile, Betting Ecosystem (ADA) added 0.06% in the last seven days and is close to 64%. At the same time, the betting volume of dollar-denominated Solana (SOL) is more than 200% higher than that of Cardano (ADA).
Of all mainstream altcoins, Mina Protocol (MINA) demonstrates the highest proportion of staking: its participants locked over 91% of the circulating supply.
Aptos (APT) and Sui (SUI) follow the Mina Protocol (MINA) with a staking ratio of 85% to 86%.
This article was originally published on U.Today.
