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Ether staked continues to reach new heights after the Shapella update in April, surpassing the 23 million Ether locked in June.
As of June 27, a total of 23.3 million Ether (ETH) has been supplied, according to data from analytics firm Nansen, which is $43.1 billion at the time of writing, nearly 20% of the current $220 billion ETH supply. . By comparison, Solana (SOL) currently has a betting ratio of 70.58%.
On the Ethereum blockchain network, staking refers to the process of validating transactions. To become a validator and secure the network, users lock (stake) their own ETH token and receive rewards as a result.
The Ethereum blockchain completed the Shapella hard fork on April 12, allowing validators to withdraw their staked ether from the Beacon Chain. In the first week of withdrawals, validators withdrew over a million ETH. Since then, the upgrade has led to an increase in the share of ETH.
“The Shanghai update has virtually eliminated this risk by allowing users to place bets and withdraw bets at will. As a result of this risk reduction, we are seeing a surge in staked Ethereum – and as expected, the network is rapidly catching up with rival networks like Solana in terms of the percentage of native token being staked on the network. This is a very good sign for Ethereum,” Dave Weisberger, CEO of algorithmic trading platform CoinRoutes, told Cointelegraph.
Ethereum staking is also gaining regulatory attention as its future is unclear in the United States, where the Securities and Exchange Commission (SEC) is tightening rules on crypto firms offering staking services.
In February, cryptocurrency exchange Kraken settled with the SEC for $30 million and closed its staking services to US customers. According to the SEC, the service qualified as an offering of securities, and the exchange had to obtain an appropriate license to operate the service. More recently, the regulator took action against Coinbase’s staking program, claiming it was offering securities.
The US hosts the majority of node operators on the Ethereum blockchain, with 48% of all validators.