• Ethereum stakers are now receiving a 7.5% APR reward for staking their coins.
• The reward is made up of 4.2% from network issuance, 2.3% from tips, and 1% from Maximal Extractable Value (MEV).
• Ethereum enabled coin staking from early December 2022, and the number of ETH stakers is expected to continue increasing.
Ethereum, the largest smart contract platform, is now offering an attractive incentive for its users to stake their coins. On-chain data has revealed that individuals staking on Ethereum are now receiving a 7.5% APR reward for doing so. This reward is made up of 4.2% from network issuance, 2.3% from tips, and 1% from Maximal Extractable Value (MEV). This makes staking on Ethereum a lucrative proposition for coin holders who wish to hold while earning above-average yields on their assets.
Ethereum enabled coin staking from early December 2022, allowing users to choose a validator node and stake their coins. Validators are entities living in the network and participating in consensus, and by staking ETH on these nodes, the protocol is able to automatically punish bad actors by slashing their stake. This helps to make the network more secure and decentralized.
The staking reward is also beneficial from an environmental perspective. This is because validators don’t have to use expensive gear to mine coins as they did before. Instead, all they need is at least 32 ETH. Data from trackers showing coins deposited on the Beacon Chain shows that there is presently over $25.2b of ETH locked.
As Ethereum continues to incentivize its community to stake their assets, the number of ETH stakers is expected to maintain an upward trajectory. This is great news for coin holders who have been looking for ways to generate passive income on their assets. With the 7.5% APR reward available for staking, Ethereum is certainly the platform to watch for those looking to maximize their returns on their cryptocurrency holdings.