- The reward rate on the network has reached 2.6%, and over 33.2 million Ethereum are being staked, with spot ETF trading soon to follow.
Days before spot Ethereum ETFs are anticipated to start trading in the US, the amount of Ethereum that is now staked within the network is almost at an all-time high due to growing rewards for locking up ETH.
According to Coinbase data, as of the time of writing, more than 33.2 million Ethereum tokens—worth approximately $114 billion—were staked, accounting for nearly 28% of the entire ETH supply. The anticipated return rate for staking ETH has increased by almost 5% over the last month, which corresponds with the growth in the total value of ETH staked.
The technique of locking up Ethereum for a predetermined amount of time in order to safeguard the proof-of-stake network is known as staking. Token holders that lock up their ETHs receive incentives from the network. As of right now, Coinbase estimates that Ethereum’s reward rate is 2.60%. From a reward rate of 2.48% last month, there is an increase.
According to Dune’s on-chain data, Ethereum staking has been steadily increasing. It broke above the 30 million ETH barrier in February and reached an all-time high above 33.4 million on July 12.
While many Ethereum holders have locked up their tokens due to staking benefits, the vast quantity of ETH that has been staked to companies like Lido—which holds 29% of all staked ETH—as well as Coinbase and others has raised concerns about centralization.
The price of Ethereum is $3,425 right now, down 1% over the last day.
Ethereum ETFs are getting close to
The increasing staking interest among Ethereum holders coincides with investor expectations that a number of spot Ethereum ETFs would be approved to begin in the United States this month.
Spot Ethereum ETFs are expected to receive approval from the U.S. Securities and Exchange Commission to start trading on July 23, as Decrypt previously reported citing persons with knowledge of the situation. That’s only seven months after the corresponding Bitcoins received authorization to start trading.
However, other analysts expect that inflows may be minimal when spot Ethereum ETFs do emerge. According to a recent research study by Citi, spot ETH ETFs in the US might only get between 30% and 35% of the net inflows that their spot bitcoin counterparts did, with the distribution being heavily weighted against them.
Nevertheless, an influx of capital into funds that own the token might benefit ETH holders. According to Bitwise Chief Investment Officer Matt Hougan’s statement on Wednesday, the anticipated introduction of multiple Ethereum ETFs later this month might lead to ETH’s price reaching $5,000, a record high.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
