Ethereum staking is nearing an all-time high with about 33.2 million ETH (worth roughly $114 billion) currently locked in the network, representing about 28% of the total ETH supply. This surge comes as rewards for staking ETH have increased and spot Ethereum ETFs are expected to begin trading in the United States soon.
According to Coinbase data, the estimated reward rate for staking ETH has increased to 2.60%, up from 2.48% last month. This rise in staking rewards has encouraged more Ethereum holders to lock up their tokens. Staking involves ETH holders securing the proof-of-stake network by locking their tokens for a specified period in exchange for earning rewards from the network.
Ethereum staking has been on a steady rise, surpassing the 30 million ETH mark in February and hitting an all-time high of over 33.4 million ETH on July 12, according to on-chain data from Dune. However, the substantial amount of staked ETH has raised centralization concerns, especially with entities like Lido, which controls 29% of all staked ETH, along with Coinbase and other major players.
As the crypto community awaits the launch of spot Ethereum ETFs in the U.S., the increased staking activity and rising rewards indicate a strong interest in securing and participating in the Ethereum network. Despite these positive developments, Ethereum is currently trading at $3,425, down 1% in the past 24 hours.