ETH price and institutional investment: Ethereum’s price has risen sharply, along with an increase in institutional investment, which has spurred the development of liquid staking. This brings flexibility and maintains liquidity for investment funds. Improvements such as direct deposits and partial withdrawals from the execution layer have enhanced validator capabilities.
Positive staking flow: Ethereum recorded a net increase of 10,000 ETH over the past week, with 115,000 ETH deposited and 105,000 ETH withdrawn. This demonstrates the growth in staking activities on the Ethereum blockchain. This ideal environment stimulates staking through the price increase of ETH.
Attractive liquid staking: Liquid staking allows users to deposit ETH and receive liquid staking tokens, helping them maintain liquidity. Notably, this feature, combined with interest from institutional investors, has driven Ethereum’s growth. Participants can use this token across multiple DeFi platforms.
Proposal to reduce staking requirements: Vitalik Buterin proposed reducing the minimum staking requirement from 32 ETH to 1 ETH to promote more diverse participation and enhance network security. This action not only expands participation but also increases Ethereum’s decentralization and security.