Ethereum network validators are witnessing a surge of activity as Ether holders are eagerly staking their tokens. This has resulted in a new milestone being reached, with the total volume of crypto-assets staked surpassing 20 million. This development comes on the heels of the highly anticipated Ethereum Shanghai upgrade, which enabled the withdrawal of tokens that had previously been locked up in staking contracts for the first time. The record-breaking weekly inflow of Ether deposits for staking at that time was a crucial step in completing the network’s transition to validating transactions through staking as opposed to mining-based systems.
Institutional staking service providers and investors reinvesting rewards after withdrawal have fueled the influx of staking activity. Additionally, a long-dormant Ethereum whale recently staked a whopping 4,032 ETH (worth nearly $7.4 million). The major staking platform Lido Finance has emerged as a major player following the success of Shapella. Lido enables anyone to stake any amount instead of going the traditional route of depositing directly to the mainnet, where a minimum deposit of 32 ETH is required. Lido deployed its v2 iteration on May 15th following a successful on-chain vote. Despite processing only 0.42% of withdrawals so far, Lido is one of the largest liquid staking protocols on Ethereum.
As Ether holders continue to stake their tokens in increasing numbers, the Ethereum network is moving ever closer to completing its transition to a staking-based validation system.