The implementation of the Shapella on April 12 has sparked a significant increase in interest in staking Ether (ETH) on the Ethereum network. Staking involves locking coins in the network to earn passive yield.
According to data from Glassnode, over 4.4 million coins have been deposited into the staking contract since April 12, bringing the total number of staked coins to 22.58 million.
Despite a reported waiting time of over one month, the demand for staking has surged. Current data from wenmerge.com indicates that ether holders seeking to become validators on the network would need to wait for approximately 36 days.
Over 50,000 potential validators are currently in the queue. Staking ether provides an annual yield of 4-5%. Validators process transactions, store blockchain data, and must deposit a minimum of 32 ETH.
Bitfinex’s analysts highlighted that the Shapella upgrade, which introduced withdrawal flexibility in ETH staking, has reduced perceived risks for investors. Before this upgrade, concerns about funds being locked for an extended period may have discouraged potential stakeholders from staking their ETH tokens.
Despite the increased demand for staking, it has not resulted in a continuous upward trend for ether. Following the Shapella upgrade, the cryptocurrency experienced an 11.5% rise, reaching $2,140 within four days. However, it has since declined and is currently trading at $1,850.
Also Read: Vitalik Buterin Warns For Ethereum Consensus
