According to CryptoPotato, Ethereum's Shapella hard fork, which sparked concerns of selling pressure, has not led to widespread unstaking as initially predicted. In January 2024, data from Intotheblock revealed the highest Ethereum staking rate, with approximately 30 million ETH staked and a staking participation rate of over 24%. This milestone indicates a preference for staking over promptly selling off tokens. Currently, only 11% of the token supply is stored on centralized exchanges, while Ethereum locked-in staking continues to surge.
The Shapella upgrade allowed stakers to withdraw their coins for the first time since December 2020. Despite this new feature, the current staked amount remains at 29.13 million ETH, accounting for 24.2% of the total supply. The Ethereum staking rate consists of two components: rewards for consensus layer duties and priority transaction fees. The rewards are guided by Ethereum's transparent monetary policy, which adapts based on the total staked ETH, prioritizing security. Transaction fees are influenced by demand on the Ethereum network and typically rise when new information or opportunities emerge.
Expanding the user base and use cases for Ethereum's staking rate is essential for enhancing network security, attracting new investments in ether, and establishing connections between digital assets and traditional finance.
