Ethereum’s staking ratio has reached 34.4% of total ETH supply, the highest level ever recorded for the network. Over a third of all ETH in existence is now locked in staking contracts. Ethereum completed its transition from proof-of-work to proof-of-stake on September 15, 2022, shifting from miners burning electricity to validators locking up ETH as collateral. Liquid staking protocols like Lido have lowered the participation threshold to essentially zero, opening staking to both retail users and institutions. The growing concentration raises questions about decentralization risks if too much ETH flows into a small number of liquid staking protocols.
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