Ethereum's staking rate looks set to grow in the coming 12-18 months, according to Staked's report. The Shapella upgrade saw a significant surge in deposits, with 750,000 ETH staked in just 6 days, yielding annual returns of 8.6%. Withdrawal activity has settled since then, with only 320,000 ETH leaving the network since. Ethereum is a proof-of-stake-consensus mechanism, whereby validators earn rewards for performing actions that help the network achieve consensus. Validators deposit 32 Ether — currently valued at around $57,000 — in order to activate the necessary security measures. This revenue stream is estimated to be worth $1.8 billion annually. Although initial concerns of an “un-staking spiral” have been disproven, withdrawals are still subject to particualrly high demand. Coinbase and Binance have been identified as major contributors to recent un-staking activity. Moving forward, it will be interesting to see how the staking rate changes as more Ethereum users become aware of this activity, as well as its potentially lucrative returns.



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