By George Ward
The Ethereum network is seeing a change in the dynamics of its governance asset, Ether. Data shows that the amount of staked tokens has surpassed those held in centralized crypto exchanges.
Even though the staking trajectory is developing a consistent pattern, the price of Ether has yet to benefit from these recent developments. The outflow of ETH from centralized exchanges has been into self-custody platforms.
A Spike In Staked Ether Volume
Meanwhile, Lark Davis, a well-known cryptocurrency content creator, shared some interesting insights about the price actions of Ethereum on his YouTube account. Davis cited the data provided by Glassnode, a leading crypto analytics platform, to reveal two distinct yet interconnected charts that depict exciting trends within the Ethereum network.
Despite a few inconsistencies in the data, the asset’s main trajectory is clear. The Glassnode analysis shows a steady decline in ETH held on exchanges since mid-2020, representing a more than 50% drop in the last three years.
Similarly, the Ultrasound.Money platform reported that 24.3 million ETH has so far been staked, indicating that over 20% of the total ETH supply has been staked. This accumulation amounts to a $40 billion valuation, even in a bear market.
However, Nansen revealed that nearly 26.1 million ETH have been staked, which is slightly higher than what the Ultrasound.Money platform reported. Nevertheless, the staked amount represents a new high.
Furthermore, data shows that the rate of staking deposits far exceeds the rate of withdrawals on the Ethereum network, sustaining the overall staked ETH amount’s uptrend.
Low ETH Price And Top Stakers
Lido, the leading liquid staking platform, commands the lion’s share of the Ether staking landscape, controlling roughly one-third of the total stake. Per current market prices, Lido’s vaults contain 8.3 million ETH, with a substantial valuation of approximately $14 billion.
There are also staked ETH on the Rocket Pool platform, albeit with a smaller proportion, contributing nearly 3% to the overall staking market. While its stake of approximately 800,000 ETH may appear insignificant compared to Lido, Rocket Pool is a formidable contender in the crypto landscape.
Meanwhile, Coinbase, the American crypto behemoth, holds the largest staking percentage with a 9% stake, dominating the centralized exchange staking providers space. Furthermore, its commanding share translates to 2.37 million ETH, demonstrating Coinbase’s widespread influence and dominance in the staking domain.
With its low-cost fee structures, Binance stands out from others but is just a little behind with a 4.6% stake. The exchange holds 1.2 million staked ETH, a formidable achievement demonstrating its competitive ability.
Meanwhile, Ethereum remains firmly on a bullish footing but with a fluctuating market price. ETH is currently valued at $1,738 and is up 4.7% in the last 24 hours at the time of writing. Despite the underlying optimism surrounding Ethereum’s fundamentals, the disparity between its vital performance metrics and its subdued market value serves as a reminder of the intricate interplay of the broader market dynamics.