Ethereum’s staking rewards rate has been holding steady around 3%, trailing the higher yields of other major proof-of-stake networks. The lower rewards could reduce inflationary pressures but have left Ethereum validators earning less compared to participants in other blockchains.
Comparison with Other Layer 1 Protocols
According to Kaiko Research, Ethereum’s 3% staking yield is considerably lower than other major Layer 1 networks like Cosmos, Polkadot, and Solana, which offer returns between 7% and 21%. Despite the lower yields, Ethereum’s network congestion has eased, with a reduction in the validator entry queue from over 95,000 in mid-2023 to just 473 currently.Staking Provider Trends
Ethereum staking provider Lido, which holds a 28% market share of staked ETH, has experienced only modest growth in 2024. This is a slowdown compared to the 90% increase seen in 2023, reflecting a reduced demand for staking on Ethereum as network activity softens.
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