Data shows more than 70% of the total staked Ethereum supply is contributed by staking services, with Lido accounting for the largest amount.
Ethereum Staking Service Provider Has Locked Up A Total Of 11.4 Million ETH
Last year, ETH successfully completed the transition to the Proof-of-Stake (PoS) consensus mechanism, which means that miners no longer have a role in the network as validators of the chain called “stakers” who are filled with roles.
Like miners, stakers earn rewards for acting as network nodes and handling transactions, but to become a staker, all investors need to lock a 32 ETH bond into the Ethereum staking contract, and unlike what mining requires, a validator. here it does not require significant computing power to perform the task.
But since the requirement of 32 ETH is a bit high for the average investor (at the current exchange rate, a stack of 32 ETH would be worth about $52,400), some companies have started providing staking pool services, where holders can generally stake any amount. tokens and get rewards staking on them. This service is usually used by collecting coins locked by different users, so that the combined amount exceeds at least 32 ETH.
As data from on-chain analytics companies Glassnode, the total value locked in Ethereum staking contracts is currently around 16.1 Million ETH in the network as a whole (that is, including all platforms as well as investors with their own custodian wallets). This is about 13.4% of the total supply of cryptocurrency.
Here is a chart showing the amount of ETH from various staking services on the market:
Looks like Lido is the largest player in the market right now | Source: Glassnode on Twitter
As shown in the chart above, the total amount of Ethereum staked by all these services increased to 11.4 million ETH, which is only 71% of all staking sources. Lido contributed only 4.7 million ETH, which is more than 29% of the total coming from the platform.
Lido is a decentralized liquid staking pool, which is a type of platform where investors add ETH to the staking pool and give other tokens in return that are backed 1:1 with their original position. This token provides liquidity to users in their locked ETH, meaning they can sell it at any time, or use it in other services (such as derivative positions).
Coinbase, Kraken, and Binance, the three largest providers in the sector, combined have locked up about 4.3 million ETH. The individual dominance is 12.8% for Coinbase, 7.6% for Kraken, and 6.3% for Binance. Clearly, even the combined dominance at 26.6% is still less than the Lido itself.
The lowest value of ETH
At the time of writing, Ethereum is trading around $1,600, up 6% over the past week.
The value of the crypto seems to have been moving sideways since the surge a few days ago | Source: ETHUSD on TradingView
Featured images from Zoltan Tasi on Unsplash.com, charts from TradingView.com, Glassnode.com