Total staked Ethereum surpasses 14 million in Q3 amid 64% decline in price

The amount of staked Ethereum has increased to just over $19 billion at about 14 million ETH since the start of the year, according to a report by the trading platform Bestbrokers.

While the price of Ethereum has declined around 64% during the same time, other assets such as Gold and equities are also down about 10-20%.

Alan Goldberg, a market analyst at BestBrokers, commented that

“Total Ethereum stake currently sits at approximately 14.44 million ($19.5 billion). Total staked ETH in Q3 2022 alone exceeds 1.096 million, which is a sign that traders find it a reliable alternative to the traditional markets.”

The Merge finally completed the proof-of-stake upgrade for the Ethereum network, and thus, it is unsurprising that this has had a net positive effect on the amount of ETH staked. Miners can no longer mine Ethereum using the proof-of-work consensus method; therefore, staking Ethereum is the primary way to contribute to the network’s security.

The current APR for staking Ethereum is around 4-5% but cannot be unstaked until the Shanghai update is completed. Platforms such as Lido allow investors to exchange sETH tokens for ETH, known as liquid staking. However, the original Ethereum remains staked in the protocol, and it simply changes hands to be redeemable by the owner of the sETH tokens.

However, in relation to the Ethereum directly staked into the network, Goldberg also noted;

“Making a deposit for a year without access to your funds is a risky move, especially if the funds are in crypto. However, traders continue to stake. Currently over 11% of the total circulating supply are staked and the amount rises daily. It just proves that many traders feel secure with Ethereum.”

The above chart showcases the steady increase in staked Ethereum since Q4 2020. When compared to the price chart for Ethereum, the data suggests that price action is not leading the staking revolution happening on Ethereum Mainnet.

The charts below showcase the total…