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Are Ethereum Staking Yields Sustainable? Understanding Trends and Risks for ETH Holders in 2024

Staking has grown in popularity in recent years due to the availability of staking-as-a-service, pooled staking, and the growth of liquid re-staking. As of July 2024, Ethereum’s security budget amounts to a staggering $110 billion worth of ETH, representing roughly 28% of the total ETH supply. There is also a general adoption of staking features within exchanges and financial applications allowing people to allocate their ETH to secure the Ethereum network. Many view staking as a low-risk return on investment, which makes it appealing to ETH holders. Vitalik Buterin, co-founder of Ethereum, holds a portion of his ETH staked, although he still keeps a part of it unstaked.

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