Ethereum Staking Hits New High as Corporate Investors Pile In
Over 35 million Ether tokens are now staked, setting a new record. This represents more than 28% of the total supply. The trend is driven by both individual and corporate investors seeking passive income.
SharpLink Gaming, a Nasdaq-listed company, recently bought $463 million worth of ETH and staked moast of it. This move shows how businesses are treating ETH as a long-term asset.They see it as a way to earn yield and support network security.
Staking ETH has become more popular since Ethereum switched to proof-of-stake in late 2022. Data from Dune Analytics shows that Lido, a leading staking platform, holds 8.75 million ETH. Centralized exchanges like Coinbase and Binance also play a role, validating 15% of the network. The SEC’s guidance in may 2024 clarified that staking doesn’t fall under securities regulation. This has encouraged more institutional participation.
SharpLink Gaming, a Nasdaq-listed company, recently bought $463 million worth of ETH and staked 95% of it. This makes them the second-largest holder after the ethereum Foundation. The company sees ETH as a long-term treasury asset, not just a tech investment.
Staking ETH offers about a 3% yield. It also helps secure the Ethereum network. As more firms follow this trend, the liquid supply of ETH on exchanges is shrinking. This could lead to higher prices as fewer tokens are available for trading.
The rise in staking is good for Ethereum’s network. It shows growing confidence in the cryptocurrency. However, it may also reduce short-term trading activity. for investors, this means less liquidity but potentially higher long-term value.
