A recent report by Flipside highlights a concerning level of centralization in Ethereum's staking ecosystem compared to Polygon. The top 10 stakers in Ethereum consistently controlled around 47-48% of the total staked ETH, indicating a lack of movement towards decentralization. On the other hand, Polygon saw its top 10 stakers' share grow from 20.4% to 24%, suggesting a healthier distribution of staking power. Despite rising competition, Lido remained the dominant player in Ethereum's staking, increasing its stake from 8.8 million to 9.8 million ETH. Ethereum experienced significant growth in staked ETH, with the largest surge occurring in January-February 2024, likely driven by speculation about SEC approval of Ethereum ETFs. The successful Shanghai upgrade and reduced fees also contributed to increased staking activity. Ethereum saw steady net inflows of staked ETH, reflecting strong user confidence in rewards and network appeal. The expansion of Tether on Ethereum also contributed to increased network activity.
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