- By adding Ethereum tokens to the network, users can earn rewards from them. However, there are questions about whether Ethereum staking is still profitable.
- Apparently, the hype around Ethereum staking seems dead at the moment. However, data shows hundreds of thousands of validators still join to stake.
Ethereum staking is the process of adding some ETH tokens to activate a validator software. Apparently, adding those ETH tokens to the network automatically makes you a validator. As a validator, you will perform a lot of duties. For instance, you will be responsible for storing transaction data, processing it, and adding new blocks to the blockchain. Performing these actions helps to keep the Ethereum network seamless. Those who become validators earn rewards from it. But for some time, many think the hype around Ethereum has died down. But the reverse is the case. Apparently, thousands of people are signing up to become validators so they can also earn rewards.
Is Ethereum Staking Dead?
Simply put, Ethereum staking is not dead. In fact, it is far from being dead at the moment. Thousands of traders and investors line up every day to stake Ethereum. But the new surge in Ethereum staking is a reality due to the Shanghai Upgrade. The Shanghai upgrade helped unlock staked Ethereum for traders to withdraw. But since then, the number of traders trying to stake more ETH on the network is staggering.
Apparently, analysis shows whales play a significant role in sustaining Ethereum staking. Instead of liquidating their assets, they are finding a way of making passive income. Over 700,000 validators are on Ethereum network, and more are waiting to join. The waiting time to become a validator takes 32 days and 5 hours. Nevertheless, close to 80,000 people are lined up waiting to get approved.
Is Ethereum Staking Still Profitable?
It is evident that Ethereum staking is still profitable. If not, you won’t see close to 80,000 people lined up to participate in staking. At the time of writing, validators staked 22.2 million ETH tokens.
The reward rate of Ethereum staking changes according to market conditions. However, the venture is still very much profitable. Ethereum’s average reward rate at press time is 4.94% in a year.
How to Stake Ethereums
The process of staking Ethereum is relatively straightforward. The primary thing to note is that it requires 32 ETH tokens to become a validator on the network. Once you become a validator, it is possible to stake fewer tokens.
There are different types of staking on the Ethereum network. But you can choose solo home staking or staking as a service. Furthermore, you can also decide to engage in pooled staking and even centralized exchange staking.
In conclusion, it is pretty clear that Ethereum staking isn’t yet dead. Data shows close to 700,000 validators on the network. Though one can earn massive rewards from Ethereum staking, note that the process is long-term.
