Ki Young Ju, the CEO of CryptoQuant, a prominent on-chain analytics firm, recently shared insights on the unexpected surge in Ethereum (ETH) staking despite the Shapella hard fork. Ki Young Ju acknowledged that his earlier expectations were incorrect, as the staking ratio reached 24% and continued to rise.
The data presented by Ki Young Ju on X indicates that the Ethereum (ETH) staking ratio, representing the percentage of ETH coins locked in staking, has reached 24%. Notably, only 11% of the total ETH supply is currently stored on centralized exchanges. This data challenges earlier predictions that the Shapella hard fork, implemented in April 2023, would lead to a significant increase in unstaking and potential sell-offs.
Despite the activation of Shapella, which allowed stakers to withdraw their coins for the first time since December 2020, the Ethereum (ETH) price weathered the event with minimal losses. Even as 1 million ETH was withdrawn in the first week post-Shapella, the ETH price fluctuated between $2,000 and $2,100.
Ki Young Ju highlighted that staked Ethereum is proving to be mostly profitable. The realized price for staking inflows is $2,014, while the current ETH rate stands at $2,519, resulting in an average Ether stake with a substantial 25% profit.
The aggregated volume of the Ethereum (ETH) staking ecosystem is estimated at an impressive $72 billion, with a 4.25% Annual Percentage Yield (APY), according to data from Staking Rewards.
In contrast, Ethereum’s competitors are experiencing shifts in staking ratios. Solana’s (SOL) staking ratio has declined by over 20% in the last week, dropping below 67%. Meanwhile, Cardano (ADA) is inching closer to a historic “flippening,” with its staking ecosystem nearing 64%. Notably, Mina Protocol (MINA) boasts the highest staking ratio among mainstream altcoins, with over 91% of the circulating supply locked in staking. Aptos (APT) and Sui (SUI) follow closely with staking ratios of 85%-86%.
The unexpected surge in Ethereum staking, despite concerns surrounding the Shapella upgrade, underscores the resilience and continued interest in staking activities within the Ethereum ecosystem.