28.17% Of Ethereum Staked Amid ETF Launch

7/26/2024 3:35:32 PM

(MENAFN- eTrendy Stock) The recent launch of the spot Ethereum ETF has seen crypto communities buzzing with renewed enthusiasm, fortifying the interest and confidence of investors in the potential performance of the world's second-largest Cryptocurrency by market capitalization.

While this remarkable event has pumped more bullish sentiment across the Ethereum ecosystem, it has triggered concerns about ensuring the blockchain's security remains uncompromised.

33,756,131 ETH Now Staked

Anticipations on the spot Ethereum ETF launch saw the number of validators operating on the Network surge past 1 million.

Data provided by Dune shows that the total number of ETH tokens staked on the blockchain post-Ethereum ETF launch has increased to 33,756,131 as of July 26. Notably, this is worth over $110 billion per ETH's price as of writing time.

With up to 1,054,879 validators increasingly staking their assets on the Ethereum blockchain, 28.17% of the total ETH supply has been locked to secure the blockchain.

Lido has taken the lead among the entities responsible for staking ETH tokens on the network, accounting for 28.9% of the total staked ETH. Despite entry into the market recently, ether takes the third position, accounting for up to 1,606,432 staked ETH.

While the launch of the spot-Ethereum ETFs poses a notable influence on the circulating supply of Ethereum, this increase in Ethereum staking activities is necessary to keep the token's volume in check.

U.S Spot Ethereum ETFs Voids Staking Feature

While Ethereum is renowned for its proof-of-stake mechanism, which allows it to secure itself through staked tokens, the launch of its ETF products with a no-staking policy has raised concerns among crypto users.

Unlike the Hong Kong spot Ethereum ETFs, the U.S. SEC has refused all spot Ethereum issuers within the region the opportunity to stake assets purchased on behalf of customers. While the long-term impact of this regulation is yet to be determined, many predict that the SEC will have a second thought on its decision.

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