Ethereum’s staked supply has dipped, raising questions about its future appeal. Let’s dive in.
Staking Percentage Takes a Dip
The percentage of Ethereum (ETH) locked in staking has fallen to 27.6%, a level not seen since July 2024. This is down from a peak of 29% in November 2024. Currently, about 33.5 million ETH is staked.
The Rise and (Possible) Fall of ETH Staking
Ethereum staking started with the Beacon Chain launch in December 2020. It quickly gained popularity, with major exchanges like Binance and Kraken offering services. This also led to the growth of liquid staking derivatives (LSDs), a market largely dominated by Lido (LDO) with a whopping 69% market share. Binance Staking holds about 15%.
The post-November 2024 US election regulatory changes might bring new staking protocols, increasing competition in the LSD space. However, Lido’s dominance is a concern, potentially undermining Ethereum’s decentralization.
Is ETH Losing its Luster?
Despite being the second-largest cryptocurrency, Ethereum seems to be losing some ground to competitors. Solana (SOL), for example, saw its total value locked (TVL) in DeFi skyrocket from $4.5 billion to $11.3 billion between September 2024 and January 2025, largely due to the memecoin craze.
Google Trends data also shows a significant drop in Ethereum-related searches, from 87 in November 2024 to 41 recently. This, coupled with more volatile price action in other coins like SOL, SUI, and XRP, suggests ETH might be losing some traction. Even large investors (“whales”) seem to be less interested.
The Current ETH Situation
Currently, ETH is trading at $2,712, up slightly in the last 24 hours. But the declining staking numbers and reduced interest raise questions about Ethereum’s long-term prospects.
