A new report from Kraken subsidiary Staked suggests that ETH’s staking rate could double in the next 18 months.
According to the report, in the week leading up to May 2, four times as much ETH was deposited as in the week before the Shapella upgrade.
Staked, a non-custodial staking service provider and subsidiary of cryptocurrency exchange Kraken, predicts, “Based on increased staking demand, we expect the ETH staking ratio to increase from about 15% currently to a range of 20-35% over the next 12-18 In 2019, daily deposits averaged 6.5 times that of April.
The firm reported that 750,000 ETH had been staked in the six days following the Shapella upgrade, surpassing the 600,000 ETH recorded in the entire month of March.
Staked’s report also suggests that Ethereum currently generates around $1.8 billion in staking rewards per year. As the cryptocurrency market continues to grow and mature, it becomes increasingly clear that staking will be an important part of the ecosystem.
As a result, more and more investors are turning to staking as a way to generate passive income.
The growing demand for staking services is a sign of the growing maturity of the crypto market. In the past, most investors simply bought and held cryptocurrencies in anticipation of long-term appreciation.
However, as the market matures, investors have become more savvy and are exploring various strategies to maximize their returns.
One of the most popular strategies is staking, which involves holding cryptocurrencies in staking wallets and earning rewards for participating in the network.
Staking is often seen as a safer and more reliable way to earn passive income than other strategies such as trading or lending.