• Ethereum stakers are rewarded with an APR of 7.5%.
• The APR is mainly derived from network issuance, tips, and MEV estimates.
• Over $25.2 billion of ETH is currently locked on the Beacon Chain.
On January 16th, 2021, data on Ethereum showed that those staking their coins are earning an annual return of 7.5%. This return is broken down into 4.2% from network issuance, 2.3% from tips and 1% from the Maximal Extractable Value (MEV) estimate. This means that for every 32 ETH deposited, stakers will receive 2.5 ETH.
The Ethereum network is designed to be decentralized and secure, and staking is a key part of this. By locking coins, users can help to ensure the network remains secure and stable. This is in contrast to the traditional mining process, which requires expensive hardware and a large amount of energy. On the Ethereum network, all that is required is the 32 ETH deposit.
As a result of this, the number of ETH stakers is currently on the rise. At the time of writing, over $25.2 billion of ETH is locked on the Beacon Chain. This is a significant amount, and it is likely to continue to increase in the future.
Ethereum allows staking from as early as December 2022, and the rewards for doing so are attractive. By staking coins, users can receive a return of 7.5% APR, which can be a great way to earn passive income. Furthermore, it is also beneficial for the network, as it increases decentralization and security. It is clear that staking is likely to become more popular in the future.