Ethereum Staking Surges as Reward Rate Rises, Approaching All-Time High

The amount of Ethereum being staked in the network is approaching an all-time high as the reward for staking on the network rises to 2.6%. Currently, over 33.2 million Ethereum tokens valued at around $114 billion are staked, accounting for approximately 28% of the total Ethereum supply according to Coinbase data. The increase in the total staked value coincides with a nearly 5% rise in the estimated reward rate for staking Ethereum over the past month.

Ethereum staking involves locking up ETH for a specific period to secure the proof-of-stake network, with holders receiving rewards from the network in return for staking their tokens. The current estimated reward rate for Ethereum staking stands at 2.60%, up from 2.48% last month. While the increasing staking rewards have attracted many Ethereum holders to participate, concerns about centralization have been raised due to significant amounts being staked with platforms like Lido, which accounts for 29% of all staked ETH.

Investor interest in staking Ethereum has grown as anticipation builds around the potential approval and launch of spot Ethereum ETFs. These ETFs are expected to commence trading in the United States soon, as sources familiar with the matter suggest the U.S. Securities and Exchange Commission may grant the necessary approvals for trading to start on July 23. While spot Ethereum ETFs are predicted to attract less significant inflows compared to their Bitcoin counterparts, the launch of these funds could still have a positive impact on Ethereum holders, potentially driving the price of ETH to new all-time highs.