The Ethereum (ETH) ecosystem has reached a pivotal milestone: over 15 million ETH have now been deposited into the ETH 2.0 staking contract, according to data from analytics platform Nansen. This represents approximately 12.3% of Ethereum’s total circulating supply, signaling strong and sustained confidence in the network’s long-term viability and proof-of-stake (PoS) model since the Merge in 2022.
This growing staking participation reflects broader trends in decentralized finance (DeFi), where users are increasingly opting to lock up their ETH to earn yield, secure the network, and contribute to Ethereum’s decentralization. With staking rewards becoming more attractive due to protocol dynamics and network demand, more investors and institutions are entering the space — both directly and through liquid staking solutions.
The Rise of Liquid Staking Dominance
Among the top staking providers, Lido Finance leads the pack in terms of total staked ETH. As a decentralized liquid staking protocol, Lido allows users to stake ETH while receiving stETH tokens in return — a liquid derivative that can be used across DeFi platforms for lending, trading, or yield farming.
What sets Lido apart is not only its market share but also its innovative revenue model. The protocol charges a 10% fee on staking rewards, with half of that fee (5%) flowing into the Lido treasury to fund development, governance, and ecosystem growth. Recently, as staking yields have increased, Lido has seen record daily revenue, reinforcing its position as a key player in Ethereum’s economic infrastructure.
In contrast, centralized exchanges like Coinbase, Kraken, and Binance also rank among the top stakers but operate under different economic models. For instance, Coinbase charges users a higher 25% commission on staking rewards — more than double Lido’s rate — highlighting a key trade-off between convenience and cost efficiency.
This divergence underscores an ongoing debate in the crypto community: decentralized vs. centralized staking. While centralized platforms offer ease of use and custodial security, they introduce counterparty risk and reduce user control. Liquid staking protocols like Lido, on the other hand, offer greater flexibility and alignment with Ethereum’s ethos of decentralization.
Why Staking Yields Are Rising
Several factors have contributed to the recent uptick in Ethereum staking yields:
- Increased network usage: Higher transaction volume and demand for block space drive up base rewards.
- Protocol dynamics: The issuance rate adjusts based on the total amount of staked ETH — when less than optimal amounts are staked, rewards increase to incentivize participation.
- EIP upgrades: Ongoing improvements like EIP-4844 (Proto-Danksharding) aim to reduce congestion and improve scalability, indirectly boosting validator incentives by making the network more efficient.
As a result, annual percentage yields (APYs) for stakers have climbed, making ETH staking more attractive compared to passive holding or traditional financial instruments.
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Decentralization vs. Centralization: A Growing Concern
Despite the positive momentum, Ethereum’s staking landscape raises concerns about centralization risks. Currently, the top five staking entities control a significant portion of all staked ETH:
- Lido Finance – Leading decentralized liquid staker
- Coinbase – Largest U.S.-based custodian
- Kraken – Established exchange with native staking
- Binance – Global exchange offering ETH staking
- Solo stakers – Independent validators running their own nodes
If any single entity or colluding group were to control more than one-third of the network’s stake, it could theoretically enable consensus-level attacks, such as censorship or finality reversion. While this threshold hasn’t been reached, regulators and developers alike are monitoring concentration levels closely.
Efforts to promote decentralization include:
- Incentivizing solo stakers through grants and technical support
- Encouraging non-custodial wallet integrations
- Developing restaking protocols that distribute risk across multiple layers
Core Keywords Driving Visibility
To align with search intent and enhance discoverability, this article naturally integrates the following core keywords:
- ETH 2.0 staking
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- Lido Finance
- Liquid staking
- Staking yield
- ETH deposit contract
- Coinbase staking
- Proof-of-stake Ethereum
These terms reflect high-volume queries from users seeking information on how to stake ETH, compare platforms, understand risks, and maximize returns.
Frequently Asked Questions
What does it mean that 15 million ETH are staked?
It means that 15 million ETH have been locked in the official Ethereum 2.0 deposit contract to participate in block validation under the proof-of-stake consensus mechanism. This secures the network and enables validators to earn rewards.
How much of Ethereum’s supply is currently staked?
Approximately 12.3% of the total circulating ETH supply is now staked. While this shows strong adoption, Ethereum remains secure as long as no single entity controls over 33% of the stake.
Why is Lido charging only 10% when Coinbase charges 25%?
Lido operates as a decentralized protocol with lower overhead costs and relies on community governance. Its fee structure supports ecosystem development while remaining competitive. Centralized exchanges like Coinbase incur higher operational and compliance costs, which may justify their higher fees.
Can I unstake my ETH anytime?
Not immediately. Since the Shanghai upgrade in April 2023, withdrawals have been enabled — meaning you can now unstake after a queue-based waiting period. However, there is still a delay (typically days) due to network processing limits.
Is liquid staking safe?
Liquid staking carries smart contract risk and potential depegging risk (e.g., if stETH loses its 1:1 peg with ETH). However, protocols like Lido undergo regular audits and maintain strong collateralization. Users should assess risk tolerance before participating.
What happens if I stake with a centralized exchange?
You retain custody of your rewards but rely on the exchange to act honestly and operate reliably. If the exchange is hacked or restricted by regulators, access to your staked assets could be impacted.
Looking Ahead: The Future of Ethereum Staking
As Ethereum continues evolving with upgrades focused on scalability, security, and sustainability, staking will remain central to its value proposition. Innovations like danksharding, eigenlayer restaking, and improved node distribution aim to make the network faster, cheaper, and more resilient.
For investors and users, the message is clear: participation matters. Whether through solo validation, liquid staking pools, or exchange-based services, contributing to Ethereum’s consensus layer offers both financial incentives and governance influence.
With over 15 million ETH already committed — and growing — Ethereum’s transition to a fully realized proof-of-stake blockchain is well underway. The next phase will focus on broadening access, enhancing decentralization, and ensuring long-term network health in a rapidly changing digital economy.