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Crypto: The rise of Ethereum staking attracts investors

Fri 14 Jun 2024 ▪ 4 min of reading ▪ by Evans S.
Getting informed Altcoins

One of the most striking trends in the crypto sphere is the rise of staking on Ethereum. Since the Ethereum network transitioned to a Proof of Stake system, staking has become extremely popular. However, with a minimum amount of 32 ETH, which is approximately 112,000 dollars, participation in staking may seem out of reach for many individual investors. Fortunately, pooled solutions have emerged, opening up new opportunities. MetaMask recently reached a significant milestone in this field, but can it compete with giants like Lido and Rocket Pool?

Crypto Ethereum

Lido dominates the crypto market

In terms of Ethereum staking, Lido stands out as the undisputed leader. With more than 27% of staked ETH, Lido reigns supreme.

Recently, MetaMask joined the race with 101,000 ETH staked, ranking 28th. Comparatively, out of the 33 million staked ETH currently, this figure might seem modest.

Lido alone represents 9.5 million staked ETH and approximately 297,000 validators. MetaMask, on the other hand, has only 3,000 validators.

This dominance by Lido highlights the concentration in the staking market, but the entry of new players like MetaMask could well reshuffle the deck.

Diversification of staking options could offer investors greater flexibility and encourage increased participation.

Decrease in the number of stakers

Despite the increase in the total value of staked ETH, a worrisome trend is emerging: the decline in the number of new stakers.

According to an analysis by CryptoQuant, the number of new stakers has dropped significantly in recent days. On June 9th, the daily number of new depositors was over 3,700, but this figure has fallen to 540.

This decline can be attributed to several factors, including the uncertainties surrounding Ethereum 2.0 and the technical challenges associated with the transition.

Additionally, fierce competition in the staking market might deter some investors from entering. However, it is important to note that competition is beneficial for the crypto market, driving innovation and offering more options to investors.

The challenges of MetaMask

MetaMask, well-known for its cryptocurrency wallet, recently launched a staking feature.

This initiative is promising, but it is not without challenges. The limited availability of this feature in the United States and the United Kingdom could be a hindrance to its growth.

In such a competitive crypto market, such a geographical restriction could limit MetaMask’s appeal.

However, the entry of MetaMask into the staking market is good news for investors. New participation in staking means new investors entering the sector, bringing with them fresh capital and a positive dynamic. MetaMask will need to stand out with its offerings and ease of use to attract a loyal user base.

The rise of Ethereum staking is undeniable, and competition among different crypto market players can only benefit investors.

While Lido continues to dominate, the entry of MetaMask and other new entrants could well change the game. Investors should remain vigilant and informed, as the crypto market is unpredictable.

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Evans S. avatar
Evans S.

Fasciné par le bitcoin depuis 2017, Evariste n'a cessé de se documenter sur le sujet. Si son premier intérêt s'est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l'état du secteur dans son ensemble.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.