Are Ethereum Staking Returns Sustainable? Understanding the trends and risks for ETH holders in 2024

Staking has grown in popularity in recent years due to the availability of staking-as-a-service, shared staking and the rise of liquid re-staking. As of July 2024, Ethereum’s security budget stands at a staggering $110 billion ETH, representing about 28% of the total ETH supply. There is also a general adoption of staking features within financial exchanges and applications that allow people to stake their ETH to secure the Ethereum network. Many see the stake as a low-risk ROI, which makes it attractive to ETH holders. Vitalik Buterin, the co-founder of Ethereum, owns some of his ETH, although he still keeps some of it unallocated.