• On Jan. 16, on-chain data reveals that staking Ethereum (ETH) earns an Annual Percentage Rate (APR) of 7.5%.
• Ethereum has incentivized its community to stake assets for an annual yield.
• The largest smart contracting platform, Ethereum, has over $25.2b of ETH locked, according to trackers showing coins deposited on the Beacon Chain.
The world of blockchain technology is ever-evolving and pushing the boundaries of decentralized finance. On Jan. 16, on-chain data revealed that staking Ethereum (ETH) earns an Annual Percentage Rate (APR) of 7.5%. This high reward is mainly attributed to the network issuance, tips, and the Maximal Extractable Value (MEV) estimate.
It is a great incentive for ETH holders who want to hold their assets and still earn above-average yields. Ethereum has incentivized its community to stake assets for an annual yield and has become more secure and decentralized with more coins staked on the platform. As of now, there is over $25.2b of ETH locked, according to trackers showing coins deposited on the Beacon Chain.
Ethereum permits coin staking from early December 2022. Individuals can choose a validator, an entity living in the network and participating in consensus, to stake their coins. By running a validator node and staking, the protocol can automatically punish bad actors by slashing their stake. This helps create a secure environment while maintaining decentralization.
It is also important to note that stakers are not required to use expensive gear, as was the case with mining. All that is required is at least 32 ETH, which is relatively small compared to the rewards received. The number of ETH stakers is expected to continue its upward trend as the APR remains attractive.
Overall, Ethereum staking is becoming a popular way for coin holders to earn above-average yields on their assets while helping ensure the network remains secure and decentralized.