Staking has become increasingly popular in recent years, with the availability of staking-as-a-service and pooled staking. Ethereum's security budget now amounts to $110 billion worth of ETH, representing 28% of the total ETH supply. Staking features are being adopted by exchanges and financial applications, allowing users to secure the Ethereum network. Many view staking as a low-risk investment, appealing to ETH holders. However, there are arguments for reducing the ETH issuance rate, including diminishing returns on security, increased costs for validators, centralization risks, and dilution and inflation. As staking evolves, it is important to quantify trends in this market.
- Content Editor ( coindesk.com )
- 2024-09-11
Are Ethereum Staking Yields Too High?