Ethereum
Rise of Ethereum staking attracts investors
6:00 p.m. ▪ 4 min reading ▪ by Evans S.
One of the most notable trends in the field of cryptocurrencies is the rise of staking on Ethereum. Since the Ethereum network moved to a proof-of-stake system, staking has become extremely popular. However, with a minimum amount of 32 ETH, or approximately $112,000, participating in staking may seem out of reach for many retail investors. Fortunately, shared solutions have emerged, opening up new opportunities. MetaMask recently took a major step in this area, but can it compete with giants like Lido and Rocket Pool?
Lido dominates the crypto market
In terms of Ethereum staking, Lido stands out as the undisputed leader. With more than 27% of ETH staked, Lido reigns supreme.
Recently, MetaMask joined the race with 101,000 ETH staked, ranking 28th. In comparison, of the 33 million ETH currently staked, this figure may seem modest.
Lido alone represents 9.5 million ETH staked and around 297,000 validators. MetaMask, on the other hand, only has 3,000 validators.
This domination of Lido highlights the concentration in the staking market, but the entry of new players like MetaMask could well reshuffle the cards.
Diversifying staking options could provide investors with greater flexibility and encourage increased participation.
Reduction in the number of markers
Despite the increase in the total value of ETH staked, a worrying trend is emerging: the decline in the number of new stakers.
According to an analysis of CryptoQuant, the number of new stakers has decreased significantly in recent days. On June 9, the daily number of new depositors exceeded 3,700, but this figure fell to 540.
This decline can be attributed to several factors, including uncertainties surrounding Ethereum 2.0 and technical challenges associated with the transition.
Additionally, fierce competition in the staking market could deter some investors from entering it. However, it is important to note that competition is beneficial for the crypto market because it drives innovation and provides more options for investors.
MetaMask, well known for its cryptocurrency wallet, recently launched a staking feature.
This initiative is promising, but it is not without challenges. The limited availability of this feature in the United States and the United Kingdom could hinder its development.
In such a competitive crypto market, such a geographic restriction could limit MetaMask’s appeal.
However, MetaMask’s entry into the staking market is good news for investors. New participation in staking means new investors are entering the sector, bringing with them fresh capital and positive momentum. MetaMask will need to stand out through its offerings and ease of use to attract a loyal user base.
The rise of Ethereum staking is undeniable, and competition between different players in the crypto market can only benefit investors.
As Lido continues to dominate, the entry of MetaMask and other new entrants could well be a game-changer. Investors should remain vigilant and informed as the cryptocurrency market is unpredictable.
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Evans S.
Fascinated by bitcoin since 2017, Evariste has never stopped researching the subject. If his first interest was in trading, he is now actively trying to understand all the advances centered on cryptocurrencies. As an editor, he aspires to continually deliver high-quality work that reflects the state of the industry as a whole.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.