•The Ethereum [ETH] merge had a positive impact on stakers, with real staking returns increasing from 1% in Q3 to 6% in Q4 of last year.
•The Eigen Layer is a new service that could potentially improve the situation of Ethereum stakers by allowing them to secure multiple services with the same initial capital.
•At press time, there were 531,653 validators that had staked their ETH holdings, generating an overall revenue of $2.02 billion according to Staking Rewards.
Impact of the Ethereum Merge
Ethereum stakers were positively impacted after the merge. Addresses continued to hold their ETH as selling pressure reduced. According to a 1 March tweet by Messari, the Ethereum [ETH] merge had a huge impact on the state of stakers. Even though the prices of ETH took a hit, staking returns improved from 1% in Q3 to 6% in Q4 of last year. The Merge vastly improved the economics for stakers, with real staking returns improving from 1% in Q3 to 6% in Q4 of last year due to a fall in net inflation from 4% to 0%.
Eigen Layer Service
The situation of Ethereum stakers could be further improved with a new service called the Eigen Layer which allows ETH stakers to secure additional networks and services with their initial capital invested into Ethreum’s network..
Current State Of Staking Rewards
At press time, there were 531,653 validators that had staked their ETH holdings and generated an overall revenue of $2.02 billion according to Staking Rewards; along with this increase in addresses holding Ethereum was observed by Glassnode who reported that 94.83 million non-zero addresses were present on the network at press time but since transaction volume decreased significantly it was indicated that these addresses weren’t selling their ETH .
MVRV Ratio Analysis
Santiment reported that ETH’s MVRV ratio was only slightly positive indicating most holders wouldn’t be making huge profits if they sold their ETH at press time and additionally Santiment also reported that long/short difference fell signifying fewer short-term holders which could lead to increased selling pressure on Ethereum in future .
Overall due merging and introduction new services like Eigen Layer ,Ethreum’s network has seen great improvement however unless MVRV ratio increases or long/short difference falls more significantly its unlikely we’ll see major profits anytime soon .