Demand for liquid Ethereum staking options is soaring in the months following the merger, according to blockchain data.
The analysis of blockchain data by Nansen shows that the increasing number of Ether (ETH) is involved in different staking solutions during the months since Ethereum switched to Proof-of-Stake (PoS).
This much-anticipated connection has been a boon for DeFi in general, and the solution has been in demand ever since Ethereum moved to PoS. This is how blockchain data comes from different staking solutions across the Ethereum ecosystem.
Nansen’s story highlights the impact of integration and the introduction of staked ETH as a ground-breaking cryptocurrency tool that quickly outpaces other promising tools that yield performance. The likes of Uniswap and other automated brokers and providers are still popular but it pales in comparison to the value locked in ETH solutions. More than 15.4 million ETH are locked in the Ethereum staking contract, which uses a total of ETH staked in six major cryptocurrencies from the main market alone:
“Staked ETH is the first seeding tool to achieve a large scale in DeFi, and it can grow exponentially and change the ecosystem in the coming years.”
Nansen provides some interesting insights from water production data. When Ethereum moved to PoS, miners were represented by miners who needed to invest or deposit 32 ETH to issue a new block and receive the protocol reward. Users who are unable or unwilling to invest 32 ETH can participate in large staking, also known as liquidation. It also allows users to withdraw staked ETH at any time.
Nansen’s metric reveals that holdings of water are longer for long-term users, while recently introduced policies attract new deposits faster than established services. 5.7 million of the total 14.5 million ETH is invested in pools such as Lido and Rocket Pool, representing more than 40% of the total ETH invested in the environment.
The Lido pool staked ETH (stETH) dominates the space with a share of 79% of the total market of staked ETH. 52% of stETH tokens are in the stETH contracts of Aave, Curve, and Lido, showing interest and value for investors in DeFi applications. stETH has also seen a 127% increase in average daily trading since the Ethereum merger. Meanwhile, the staking pools owned by Rocket Pool (rETH) and Coinbase (cbETH) have seen the strongest growth in the last three months, at 52.5% and 43.3%, respectively. Coinbase’s cbETH outgrew other assets besides stETH in supply despite only launching in August 2022. The growth of Coinbase’s ETH staking option also suggests that everyday users still trust the central company and the content of getting returns from staking ETH, as opposed to complicated, chained, money transfer schemes.