ETH validators earn over $2 billion in ETH staking rewards
Ethereum validators increase their earning capacity to approx $2 billion in ETH staking rewards.
cryptocurrency
Highlights
- The network noticed a rise in the active validators
- The staking of ETH is dominated by companies like Binance and Kraken, this mounts tensions among other companies
- As holders perceive the market to be deflationary, withdrawal of assets from their exchanges rose
According to data from Delphi Digital, a research platform dedicated to crypto and digital assets, Ethereum validators have received 1.1 million ETH ($2007 million) in staking rewards since January 2021.
Around 2021, not long after the Beacon Chain's debut, Ethereum validators started gambling. Since then, their bounty has reportedly increased with the addition of more validators in the network.
2023 marks increase in number of validators
In the first 90 days of 2023, the number of Ethereum validators increased by more than 67,000. Data from the Beacon scan, an Ethereum 2.0 block explorer that lets users track the progress of the ETH 2.0 staking process shows that the number of ETH validators was approximately 495,000 at the beginning of this year, whichose to 562,236 by the end of March 2023.
The staking of Ethereum is interestingly dominated by five companies, namely, Lido Finance, Unlabelled, Coinbase, Kraken, and Binance. The concentration of these five entities in holding the majority of stakes has stimulated concerns related to centralisation and censorship risks. Since February 2023, the number of OFAC Compilat Blocks, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) that administers programs related to national security has decreased, given the analysis of censorship-related concerns.
At this time, 15 percent of the total ETH supply—more than 18 million tokens—has been staked. In recent weeks, the network witnessed increasing interest following the announcement for the upcoming Shanghai update, which is said to permit validators to withdraw their tokens.
According to DeFillama data, a multi-chain TVL stats dashboard, focused on the total value of ETH staked on liquid staking platforms to be around 8 million tokens, with a cumulative value of $14.5 billion.
ETH holders choose self custody
A recent report from Blockchain analytics firm, Santimen, highlighted the supply of ETH on exchanges to have noticed a decline to its lowest volume with more holders opting for self-custody. The report continues to focus on the quantity of ETH to stand at 10.31 percent, since July 2015.
Given that ETH has been deflationary since it completed The Merge in September 2022, the number of ETH tokens in circulation has decreased by almost 0.12 percent to 120.44 million, which indicates that more than 74,000 ETH tokens have been taken from the network.
COMMENTS 0