How staked Ethereum reached its single-day high since July

Posted: September 20, 2023

• The number of staked ETH reached 317,000 last week.
• Lido continued to dominate the market as a few others stepped back.

On 13 September, the number of staked Ethereum [ETH] reached a single-day high since July. The data, revealed by IntoTheBlock, made it known that 134,000 ETH were staked on the said date.

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The increase also laid the grounds for the impressive growth ETH staking experienced for most of the 11-16 September week.

In the last week, ETH staking saw a net growth exceeding 317k. A significant portion of this – 134k ETH to be exact – was staked on September 13th, marking the highest single-day increase since July.

Dive into more staking insights here🔗https://t.co/E6DKyZtduZ pic.twitter.com/V1qHgztYSq

— IntoTheBlock (@intotheblock) September 20, 2023

The faith is in ETH

The increase in the activity signifies validators’ dedication to locking up their assets while looking to earn yields in ETH. To be clear, the yields are gotten from transaction fees in return for validators’ help in securing the Ethereum network. 

An in-depth look at the post shared above showed that deposits throughout last week were much higher than withdrawals. Furthermore, it was only on 17 September that the amount deposited and withdrawn almost seemed to be at par.

This reinforced the notion that validators had confidence in the returns staking would bring.

From Glassnode’s data, this 317,000 ETH staked last week also impacted the stake effectiveness metric. The stake effectiveness is calculated as the ratio between the total staked balance and the total effectiveness balance of the Proof-of-Stake validator. 

So, the result of the division gives an idea of active consensus participation in the activity. At the time of writing, ETH’s stake effectiveness was 0.996, confirming how vigorous the staking activity has been.

Source: Glassnode

Others succumb, but Lido never backs down

Another reason the confidence in staking may have grown is the self-limit rule some staking providers implemented. On 31 August, staking providers such as Rocket Pool [RPL], StakeWise, and a few others committed to 22% Ethereum staking market share.

These providers are committed (or are in the process of committing) to self-limit to <22% of Ethereum validators. This is how our chain will be successful: Coordination above greed. Cooperation instead of winner-take-all.@Rocket_Pool @stakewise_io @staderlabs @divastaking

— superphiz.eth 🦇🔊🛡️ (@superphiz) August 30, 2023

The idea, which was proposed in May 2022, now means that the concerns about the activity becoming too centralized would be reduced. However, the move, which was made to ensure that Ethereum remains fully decentralized, did not sit well with Lido Finance [LDO].

As the top liquid staking platform, Lido’s community voted against self-limiting its dominance in June. This decision has raised concerns about Lido’s dedication to Ethereum’s objectives.

Regardless of the issues with Lido’s resolve, the project has continued to dominate the staking sector.

Realistic or not, here’s LDO’s market cap in ETH’s terms

Glassnode delivers insight into the value staked by providers on its platform. According to the on-chain analytic platform, Lido had 8.72 million ETH staked. Coinbase, which is the top centralized exchange in the sector, had 2.06 million ETH.

Meanwhile, other platforms shared the rest of the spoils.

Source: Glassnode