Ethereum 2.0 staking has been gaining traction, with the deposit contract for staking Ethereum on the Beacon Chain reaching an all-time high of 47.36 million ETH. This milestone represents a significant increase from two years ago when the contract held only 10.9% of the Ethereum supply. The fact that it now accounts for 33.9% of the entire supply indicates a growing interest in staking among Ethereum holders.
Redistribution of ETH Holdings
One interesting development highlighted by Santiment is the redistribution of ETH holdings across different wallet tiers. Wallets holding more than 10 million ETH, most of which are part of the Beacon Deposit Contract, have seen a 23% increase in their share of ETH supply over the past two years. On the other hand, wallets with 10K+ETH (excluding the contract) have experienced a 5.3% decrease, while wallets with 10K or less ETH have decreased by 17.7%. This shift suggests a shift towards concentrated staking among larger holders.
Impact on Staking Rewards and Inflation Rates
Despite the growing popularity of Ethereum 2.0 staking, data indicates that both staking reward rates and inflation rates have decreased unexpectedly. The reward rate, which represents the annual percentage return for staking ETH, has dropped. This means that stakers will receive less new ETH per staked token in the short term. However, the reduced inflation rate implies that the overall ETH supply is expanding more slowly, which could potentially benefit the value of ETH in the long run.
The surge in Ethereum 2.0 staking deposits and the redistribution of ETH holdings signal a shift in the landscape of Ethereum ownership and participation. While the decrease in staking reward rates may impact stakers in the short term, the slower inflation rate could have positive implications for the value of ETH in the future. It will be interesting to see how these trends continue to evolve and shape the Ethereum ecosystem in the coming months.
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