Continued: Ethereum Staking and MetaMask Insights

Emergence of Ethereum Staking

With Ethereum's network transitioning from Proof of Work (PoW) to Proof of Stake (PoS), the realm of Ethereum staking has witnessed a surge in interest and adoption. Numerous platforms have emerged to cater to retail stakers seeking to participate in staking activities. Notably, MetaMask has stepped into the arena by launching staking services to cater to the growing demand.

MetaMask's Pooled Staking Feature

MetaMask, known for its user-friendly interface and extensive functionalities, has introduced a pooled staking feature for Ethereum holders. This innovative feature enables users to engage in staking without the substantial volume requirements typically associated with validator responsibilities. The standard practice in Ethereum staking involves locking up 32 ETH, a significant investment currently valued at approximately $112,000.

Leading the Ethereum Staking Landscape: Lido's Dominance

While MetaMask has recently introduced pooled staking, platforms like Lido and Rocket Pool have been pioneers in offering similar staking services. Lido, a prominent player in the Ethereum staking sphere, stands out with a notable 28.76% share of the staked volume.

Lido's unique proposition of providing stETH in exchange for staked ETH distinguishes it from other platforms. This feature empowers holders to utilize stETH across various activities, presenting a valuable utility not present in other offerings, including that of ConsenSys, the entity backing MetaMask's staking services.

Insights from Staking Data Analysis

Data analysis from Dune Analytics sheds light on ConsenSys Staking, the entity supporting MetaMask's pooled staking feature. ConsenSys Staking ranks 28th among staking platforms, overseeing approximately 101,000 ETH and operating around 3,000 validators. The cumulative staked Ethereum surpasses 33 million, constituting 27.56% of the total ETH supply.

Among the staking platforms, Lido has emerged as a dominant player, with around 9.5 million ETH staked, supported by close to 297,000 validators. This positions Lido as a frontrunner in the Ethereum staking sector.

Declining Trend: New Ethereum Stakers

Despite the upward trajectory of Ethereum staked value, a concerning trend emerges with a decline in the number of new stakers entering the ecosystem. Recent analysis conducted by CryptoQuant highlights a significant reduction in new daily depositors, plummeting from over 3,700 on 9th June to approximately 540 at present. This decline raises questions about the factors impacting the participation of new stakeholders in the Ethereum staking landscape.