Ethereum staking continues to gain wider acceptance, but there’s a problem

Ethereum staking continues to gain wider acceptance, but there’s a problem

August 7, 2023

By Aniket Verma

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The total amount staked equated to 21% of ETH’s circulating supply.

With an increase in validators, the staking rewards have progressively reduced.

The much-awaited Shapella Upgrade, which went live on the Ethereum [ETH] mainnet earlier this year, has begun to advance towards its goal of boosting ETH staking.

As per a recent update by on-chain analysis firm Glassnode, the total ETH locked on the largest proof-of-stake (PoS) network clocked a fresh all-time high (ATH) of 27.03 million. This represented a nearly 40% jump since the execution of Shapella.

Stakes are high

Shapella, which enabled withdrawals, marked an end to a two-year-long wait for users who began to lock their ETH holdings in the hopes of earning passive revenue from them.

Infact not just the staked ETH but any earned staking incentives could also be withdrawn thanks to the upgrade. This marked a complete transition from the proof-of-work (PoW) to the proof-of-stake (PoS) algorithm.