Binance Experts Calculate the Share of “Profitable” Ethereum Stakers


Only 31% of Ethereum (ETH) stakers are “in the black” relative to current market quotes, experts calculated Binance Research.

Binance Experts Calculate the Share of “Profitable” Ethereum Stakers
Data: Binance Research.

At the same time, a significant share of ETH (about 2 million) was provided in a deposit contract in the price range of $400-700. Experts noted that this is consistent with the early stage of staking in December 2020.

According to them, this group of users belongs to the obvious supporters of Ethereum. At that time there was no possibility liquid stakingand the timing of unlocking funds was unknown.

In total, since the launch of Beacon Chain, users have staked over 16.5 million ETH. There are over 520,000 validators on the network.

Staking services are provided by a number of platforms, dominated by the protocol Lido Finance. The service accounts for 29.2% of the total volume of locked coins. Exchanges Coinbase, Kraken and Binance occupy about 26% of the market, solo stakers – almost 25%.

Binance Experts Calculate the Share of “Profitable” Ethereum Stakers
Data: Binance Research.

According to experts, the income on locked coins averages 7.3% per annum. It consists of rewards for confirmation of consensus (4.1%), additional payments for transaction priority (2.2%) and MEV (1%).

The Shanghai upgrade scheduled for March among the updates will activate EIP-4895which will allow you to withdraw ETH from the Beacon Chain staking contract.

Binance Research analysts are confident that the hard fork will contribute to the flow of funds into staking. They are counting on interest in passive income from institutional investors.

As another important argument, experts noted the relatively low share of staked Ethereum in the market capitalization – only 14.3%. For other cryptocurrencies offering a similar opportunity, the indicator reaches 97.5% (BNB).

Binance Experts Calculate the Share of “Profitable” Ethereum Stakers
Data: Binance Research.

Recall that in early February, Kraken, as part of the settlement of charges from SEC agreed to shut down the staking service and pay a $30 million fine. The regulator classified the services as an unregistered securities offering.

The head of Coinbase, Brian Armstrong, said that the company is ready to challenge such claims of the Commission in court.

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