As staking grows in popularity through liquid staking derivatives, there is a need to better quantify staking returns for different platforms and how they change over time, says Marcin Kazmierczak, co-founder and coo, RedStone.

Staking has grown in popularity in recent years due to the availability of staking-as-a-service, pooled staking, and the growth of liquid re-staking. As of July 2024, Ethereum's security budget amounts to a staggering $110 billion worth of ETH, representing roughly 28% of the total ETH supply.

Many view staking as a low-risk return on investment, which makes it appealing to ETH holders. Vitalik Buterin, co-founder of Ethereum, holds a portion of his ETH staked, although he still keeps a part of it unstaked.

One way to better quantify trends in staking is using the Composite Ether Staking Rate (CESR) oracle feed which is a standardized on-chain Ethereum Staking Rate. This can act as a useful benchmark when considering trends in staking.

Although staking is essential to Ethereum's security, there are compelling arguments for reducing the ETH issuance rate. Staking, particularly through liquid re-staking, is rapidly evolving, and as Ethereum continues to innovate, it will be important to better quantify trends in this corner of the market.

Source: https://www.coindesk.com/markets/2024/09/11/are-ethereum-staking-yields-too-high/

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