Tuesday, September 17, 2024
Home > News > Ethereum News > Are Ethereum Staking Yields Sustainable? Understanding Trends and Risks for ETH Holders in 2024

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.

Source