The landscape of crypto staking is always changing, with innovative developments emerging regularly. Originally a feature of networks utilizing proof-of-stake consensus mechanisms like Ethereum, staking and restaking have now been integrated into the Bitcoin blockchain by developers.
A report from the non-custodial staking services provider P2P.org highlighted important staking trends that have emerged in the market over the last month.
Trends in Ethereum Staking
Despite the current uncertainties and volatility in the crypto market, the Ethereum network continues to experience steady growth in the number of validators. P2P.org reported a 1.49% increase in both the validator count and the amount of staked ether (ETH).
“While this growth aligns with previous months, it’s evident that price fluctuations and diminished rewards for validators have hindered progress compared to earlier in the year. Nonetheless, continuous growth is still positive!” commented the staking services provider.
According to P2P.org, the moderated growth is anticipated given the state of the crypto market, which has seen the total market capitalization decrease from $2.3 trillion to $2.03 trillion within just 14 days. This decline coincided with worries surrounding the upcoming U.S. elections and the possibility of a recession.
In spite of this, the Ethereum staking ecosystem has been alive with notable developments, including the integration of ERC-20 tokens such as Ethena’s synthetic dollar, USDe, as staking collateral assets via the Symbiotic restaking protocol. Additionally, the Ethereum staking protocol EigenLayer announced a new round of EIGEN airdrops to reward its community for their continued support since launch.
Bitcoin Enters the Staking Landscape
Conversely, Bitcoin commenced its staking journey at the end of August with the launch of the Bitcoin staking protocol Babylon. P2P.org noted that the launch was a success, as Babylon hit its cap of 1,000 BTC deposits in just four hours. The platform has also garnered multiple large reserve tokens (LRTs), drawing significant Bitcoin deposits for the upcoming staking round.
Babylon’s introduction has fostered competition among Bitcoin layer-2 networks eager to claim a share of the staking opportunities. CryptoPotato reported that Bitcoin layer-2 Core initiated BTC liquid staking earlier this month, allowing holders to earn yields on their coins while maintaining the freedom to trade their assets.
Furthermore, Bitcoin liquidity protocol Lombard recently launched a service enabling the restaking of Liquid Bitcoin on the ETH staking protocol Ether.fi.
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