Ethereum Staking Hits Record High
Crypto staking is the process of locking up digital assets on a blockchain network to help verify transactions and secure the network.
In return for pledging crypto such as Ethereum, investors earn rewards such as cash payments or more cryptocurrency.
Analysts liken crypto staking to earning interest on a bank savings account or receiving dividend payments from holding stocks.
According to Bitwise's quarterly staking report, a record 43.8 million Ethereum, which is nearly 36% of the circulating supply, was locked into staking at the end of September this year.
At the same time, annualized staking yields averaged 2.63%, down from 2.81% in the year's second quarter.
Ethereum saw net staking inflows of just under two million ETH tokens in the third quarter, its sixth consecutive quarter of positive inflows.
Institutional staking continues to drive the trend, according to Bitwise.
Bitmine Immersion Technologies (NYSE: $BMNR), the leading Ethereum treasury firm, led the way, increasing its staking more than 1,000% to 5.07 million ETH at the end of September.
In the third quarter, the Ethereum network's revenue fell to $40.6 million U.S. from $63 million U.S. in the year's second quarter.
ETH is trading at $2,480 U.S. per token on Oct. 21.
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