The lower the yield gets, the more people seem to lock up their ETH. Itโs a bit counterintuitive ๐ค
Bitwiseโs Q3 staking report, released on October 20:
Ethereum staked hit 43.8 million
$ETH Thatโs 35.9% of the total supply, an all-time high
Net inflows of 1.99 million ETH for the quarter
Net inflows for six consecutive quarters
But the trade-offs are clear, too
Gross staking rewards fell from 2.81% to 2.63%
The more people there are, the less each person gets
Validator numbers also fell from around 1.1 million to 881,000
After Pectra, large validators consolidated, while smaller operators exited
What stands out to me isnโt the 43.8 million figure itself
Itโs that staking is moving in the opposite direction from prices and ETFs
ETH ETFs were still seeing net outflows in October, and the price was still far from its highs
But stakers havenโt leftโinstead, weโve seen net inflows for six straight quarters
This suggests the rationale for holding ETH as a core position is changing
Many people no longer expect it to surge in the short term
Instead, theyโre holding it as a long-term position that can earn yield
2.63% may not look like much, but itโs a native on-chain yield
Still, thereโs another side to keep an eye on
Staking is becoming increasingly concentrated in the hands of large operators
Decentralization may come at an increasingly high cost
Are you staking the ETH you hold?
Or would you rather keep it liquid and wait for opportunities?
$ETH #ไปฅๅคชๅ #่ดจๆผ #Staking
Not investment advice. DYOR. Trading involves risk.