Home Altcoins News Ethereum Staking Surges as Cardano Nears Solana in Staking Race: Crypto Insights

Ethereum Staking Surges as Cardano Nears Solana in Staking Race: Crypto Insights

In the dynamic world of cryptocurrency, Ethereum’s recent surge in staking activity has captured the attention of investors and analysts alike. According to insights shared by Ki Young Ju, founder and CEO of CryptoQuant, Ethereum’s staking ratio has reached an impressive 24%, signaling growing confidence among holders.

Ju’s admission of misjudgment regarding the effects of Ethereum’s Shapella hard fork underscores the resilience of the Ethereum network. Despite initial concerns about potential sell-offs following the upgrade in April 2023, Ethereum’s price weathered the storm, fluctuating between $2,000 and $2,100 even as stakers withdrew 1 million Ether in the first week post-Shapella.

The Shapella hard fork, activated in April 2023, allowed stakers to withdraw their coins for the first time since December 2020. Amid a market still influenced by bearish sentiments, analysts anticipated widespread withdrawals and subsequent sell-offs of Ethereum (ETH). However, the outcome proved otherwise, with only 11% of the ETH supply remaining on centralized exchanges.

During the first week post-Shapella, stakers withdrew 1 million Ethers (ETH), yet the ETH price remained resilient, fluctuating between $2,000 and $2,100. According to Ki Young Ju, the majority of staked Ethereums (ETH) are currently profitable, with the realized price for staking inflows at $2,014, while the current ETH rate stands at $2,519. This implies an average Ether “stake” is held with a significant 25% profit.

The aggregated volume of the Ethereum (ETH) staking ecosystem is estimated at an astonishing $72 billion, boasting a 4.25% Annual Percentage Yield (APY), as reported by Staking Rewards data. This highlights the growing popularity and profitability of Ethereum staking as an investment strategy.

In a surprising turn of events, Ethereum’s competitors are also making headlines. Cardano (ADA) is on the verge of a historic “flippening,” with its staking ecosystem close to surpassing that of Solana (SOL). The Solana staking ratio has plummeted by over 20% in the last week, dipping below 67%. Meanwhile, Cardano’s staking ecosystem has added 0.06% in the last seven days, inching closer to a 64% staking ratio.

What’s more, staked Ethereums are proving to be a profitable venture for investors. With a realized price for staking inflows averaging $2,014 and the current ETH rate standing at $2,519, the average Ether “stake” boasts a significant 25% profit margin. The aggregated volume of Ethereum staking now sits at an impressive $72 billion, with a healthy 4.25% in annual percentage yield (APY), according to Staking Rewards data.

Meanwhile, in a potential historic shift, Cardano (ADA) is inching closer to surpassing Solana (SOL) in the staking race. While Solana’s staking ratio has experienced a significant decline, dropping over 20% in the last week to dip below 67%, Cardano’s staking ecosystem has seen a slight uptick, approaching the 64% mark. Despite Solana’s USD-denominated staking volume being over 200% larger than that of Cardano, the latter’s steady progress highlights its growing influence in the crypto space.

Among mainstream altcoins, Mina Protocol (MINA) stands out with the largest staking ratio, as stakers have locked over 91% of the circulating supply, showcasing a strong vote of confidence in the project’s future.

As the cryptocurrency landscape continues to evolve, the surge in staking activities reflects investors’ long-term commitment to blockchain projects. With Ethereum leading the charge and competitors like Cardano and Solana vying for dominance, the staking arena promises to remain a focal point for investors seeking both stability and potential returns in the ever-changing world of digital assets.

For those navigating the complexities of cryptocurrency investment, insights from industry leaders like Ki Young Ju provide invaluable guidance, shedding light on emerging trends and opportunities in the fast-paced world of decentralized finance.

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Sakamoto Nashi

Nashi Sakamoto, a dedicated crypto journalist from the Virgin Islands, brings expert analysis and insight into the ever-evolving world of cryptocurrencies and blockchain technology. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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