Only 15% of Ethereum’s total supply is currently staked in Ethereum 2.0, which is much lower than other proof-of-stake blockchains like Cardano, Solana, BMB, Polygon, and Polka Dot, which range between 40% and 70% staked. However, this is because Ethereum holders have not yet priced in the stability of Ethereum 2.0. A Shanghai upgrade in April 2023 will allow all Ethereum stake to be freely withdrawn, which will bring larger staking demand to Ethereum and be overall very bullish for Ethereum. Expect short-term volatility, but institutions will finally trust Ethereum to be saved for income.
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The Most Bullish Metric for Ethereum
Ethereum has been making waves in the cryptocurrency market for quite some time now. It is second only to Bitcoin in terms of market capitalization and popularity. However, not many people are aware of one of the most bullish metrics for Ethereum – its low staking percentage.
How does Ethereum’s staking percentage compare to other cryptocurrencies?
Currently, only 15% of the total supply of Ethereum is staked in Ethereum 2.0. This percentage is much lower than all other proof-of-stake blockchains such as Cardano, Solana, BMB Polygon, Polka Dot, etc. which all range between 40% to 70% staked. Ethereum is an outlier in this case, and this is because Ethereum holders have not yet priced in the stability of Ethereum 2.0.
Why are Ethereum holders not staking?
Each staking has been live since 2020 on the Ethereum Beacon Chain. However, the biggest caveat was that all Ethereum staked were locked until Ethereum 2.0 fully activates, unlocking the Ethereum. This has discouraged holders from staking their Ethereum.
When will Ethereum staking become more popular?
The Shanghai upgrade, slated for April 2023, is focused on exactly this – allowing all Ethereum stake to be freely withdrawn. This upgrade will finally bring the larger staking demand to Ethereum, as institutions will now be able to trust that Ethereum can indeed be saved for income. Expect a short-term volatility and thud, but overall, this development will be very bullish for Ethereum.
In conclusion, the low staking percentage of Ethereum is a bullish metric for the future of the cryptocurrency. Once Ethereum staking becomes more popular, it will significantly impact the overall value of Ethereum, making this an exciting time for Ethereum investors.
