Staked-ETH Surges 7 Million In Less Than 4 Months

According to data from Dune Analytics, more than 22% of Ethereum's supply is now staked on the network, with the precise number of ETH just shy of the 26.3 million mark. 

As a result of these rising figures, the number of validators has also increased to exceed 821,600, at time of writing. 

The volume of ETH staked on the network has been increasing since the option became available in late 2020, and the Ethereum network’s Shanghai upgrade which allowed the withdrawal of staked ETH, did not reverse this trend, despite concerns from some members of the ecosystem at the time. 

According to Dune’s dashboard, the amount of ETH staked, and therefore the number of network validators, experienced an aggressive period of growth beginning in early May. Since May 5th 2023, more than 7 million ETH has been additionally staked, resulting in a validator increase of nearly 230,000, rendering Ethereum evermore decentralized.

ETH Staking Platforms - Lido Still The King

The number of platforms designed to provide access to Ethereum staking yield, without the friction and risk involved in setting up and running one’s own validator, is increasing alongside the total volume of staked ETH.

However, the distribution of ETH across such platforms is altogether less decentralized than the Ethereum network itself.

Lido Finance still holds top spot in the ETH-staking landscape, with some 32.4% market share, equivalent to more than 8.5 million ETH, according to data from Dune Analytics. Its closest competitor, in Coinbase, holds just 8.7% market share, or around 2.3 million ETH.

The concentration of staked-ETH within Lido Finance and its validators has raised concerns regarding the Ethereum network’s decentralization in the past. This culminated in a Lido Finance governance proposal over whether the protocol should consider limiting its inbound ETH - This was voted down almost unanimously by the LDO community.