While it was being discussed in the cryptocurrency market that FTX, the cryptocurrency exchange that went bankrupt in November 2022, would stake Solana (SOL) worth approximately $122 million and Ethereum (ETH) worth $30 million, an ETH report came from Coinbase.
According to Coindesk, Coinbase stated in a research report that investors' demand for ETH staking has stabilized since the Shanghai update in May.
Stating that the validator login, which verifies transactions by locking Ethereum in return for rewards, has reached its highest capacity in recent months, Coinbase said that ETH staking returns decreased from 5% to 3.5%.
Coinbase analysts David Duong and David Han said in the report:
“The return on staked ether provides a basis for the crypto ecosystem and a reference point for alternative cryptocurrency investments for investors.
If underlying activity and transaction fees on the network remain consistent, we expect staking yield to remain stable as validator growth slows.
“Until the Dencun upgrade (which is likely to occur in the first half of 2024) we do not foresee any significant technical impacts that will meaningfully impact on-chain activity, other than major new protocols or egregious hacks (as it is not a major Ethereum protocol upgrade).”
ETH continues to trade at $1,581 at the time of writing.
*This is not investment advice.