Over 70% of Ethereum Supply Remains Unstaked, Missing Out on Yield Opportunities
CryptoNewsTerminal Staff02 Sep, 2024
Over 70% of Ethereum Supply Remains Unstaked, Missing Out on Yield Opportunities
Ethereum Staking Lags Despite High Rewards Crypto market maker Wintermute has highlighted that over 70% of the Ethereum (ETH) supply, approximately 88.7 million ETH, remains unstaked. This represents a significant missed opportunity for yield generation through decentralized finance (DeFi) protocols. Staking ETH allows holders to earn passive income by contributing their assets to the network's validation process. Wintermute recently expanded its support to include stETH, the liquid staking token issued by the Lido (LDO) staking platform. stETH represents staked ETH and allows holders to participate in DeFi activities while their ETH is staked. The low staking participation rate suggests that many Ethereum holders are unaware of the potential benefits or are hesitant to lock their assets for an extended period. As the Ethereum network transitions to a proof-of-stake consensus mechanism, staking is expected to become increasingly important for securing the network and earning rewards.
