The volume of the ether stack continues to reach new levels since Chabela’s April upgrade, surpassing 23 million ether locked in June.
According to data from analytics firm Nansen, a total of 23.3 million ether (ETH) were in storage as of June 27, worth $43.1 billion at the time of writing and representing roughly 20% of the current supply of $220 billion in ETH. In contrast, Solana (SOL) currently has an engagement rating of 70.58%.
In the Ethereum blockchain network, staking refers to the process of validating transactions. In order to earn validator status and secure the network, users lock in (a stake) in the ETH token and earn rewards as a result.
The Ethereum blockchain completed its Shapella hard fork on April 12, allowing validators to pull stacked Ether from the Beacon Chain. In the first week of withdrawals, the validators mined more than 1 million ETH. The upgrade has led to ETH share growth since then.
“The Shanghai Upgrade essentially eliminated this risk by allowing users to contribute and redeem at will. As a result of this de-risking process, we are seeing a spike in accumulated ether – and as expected, the network is quickly catching up to rival chains such as Solana in terms of percentage. This is a very healthy sign for Ethereum,” Dave Weisberger, CEO of algorithmic trading platform CoinRoutes, told Cointelegraph.
The Ether stake is also attracting the attention of regulators, with its future uncertain in the US, where the Securities and Exchange Commission (SEC) is tightening rules for crypto companies that offer staking services.
In February, cryptocurrency exchange Kraken settled with the SEC for $30 million and closed its staking services to its US clients. According to the Securities and Exchange Commission, the service qualifies as a securities offering and the exchange must obtain an appropriate license to operate the service. Recently, the regulator took action against Coinbase’s staking program, claiming that it offers securities.
The United States is home to the majority of node operators on the Ethereum blockchain, which includes 48% of all validators.
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