Ethereum’s staking landscape has hit a significant milestone, with a whopping 25% of its circulating supply now committed to securing the network. As of February 8, over 30 million ETH has been staked, highlighting the community’s confidence in Ethereum’s future.

Staking Surge on Ethereum

Lido, a dominant force in liquid staking, has played a pivotal role in reaching this landmark, commanding a 31.5% market share. The collective value of the staked ETH is a staggering $73 billion, supported by the efforts of nearly one million validators.

Validator Activity Spikes

Recent weeks have seen a surge in staking deposits. This uptick reflects growing interest in Ethereum’s proof-of-stake system, a positive sign for the network’s ongoing security and stability.

Strong Holding Sentiment

Analysis from Nansen confirms the 30 million ETH figure and points to a virtually empty unstaking queue, indicating that holders are not rushing to withdraw their staked ETH, which represents less than 0.6% of the total staked amount.

Ethereum’s Deflationary Dynamics

Post-Merge, Ethereum has seen its supply contract by 344,960 ETH, equating to a deflation of almost $840 million. This deflationary trend is underscored by a -0.57% annual inflation rate, with the network burning 4,288 ETH in the last day alone.

Market Response and Restaking Phenomenon

The market has reacted positively to these developments, with Ethereum’s price rising 2.6% in one day and 6.8% over the week. As the staking narrative strengthens, the price is expected to continue recovering from its January 2024 dip.

Furthermore, the practice of restaking is gaining momentum, as evidenced by the $300 million valuation of the new restaking token category by CoinGecko. This trend is exemplified by price jumps in tokens like Pendle Finance and Picasso, and the success of protocols such as EigenLayer.