01 Aug 2023

Is staking ETH a profitable option in 2023?

People often rave about Bitcoin and the ROI it can offer, but with Ethereum 2.o making its place in the market, investors look up to ETH as a strong contender to Bitcoin. Latest Ethereum price predictions made by industry experts reveal that the cryptocurrency could go as high as $2450 to $2675 in 2023.

Also the overall passive income on ETH staking has been ranging from 6% to 6.13% at the time of writing. The overall earnings on ETH staking has improved this year. Eth staking began in December 2020 and most Eth liquidity pools saw a slight high in the beginning of 2022 but later saw a prolonged winter. Good news is that ETH has bounced back in 2023.

Additionally, according to charts ETH staking pools including Lido DAO, Curve and a few others have been leading the staking game for investors who either don’t have 32 ETH or may not want to bet too much on staking. These staking platforms make up 30% of the market cap of ETH staking.

Overall staking pools have been popular amongst retail investors while centralized exchanges have been the least favorite majorly because of the high fees charged for the service.

How much can you earn by ETH Staking: An Overview.

The average monthly earnings for ETH staking ranges close to $216. The daily validator revenue is approximately $3.39 million. This revenue is subject to ETH price change, validator count and network performance. The issuance rate of Ethereum 2.0 is mainly determined by the base reward. The lower the base reward per validator, the greater the number of validators connected to Ethereum 2.0. This is the case because the base payment is inversely proportional to the square root of all Eth 2.0 validators' total balance. The APY in 2022 for staking ether was approximately 4%. This means that if anyone staked ETH when the price was around $1320, the approximate returns on yearly basis would be around 1.3 ETH.

Ethereum has over 606,000 validators on its network as of June 2023. The attestation rate is 96.47 % with 96 % effectiveness rate making ethereum staking the right instrument for making passive income. Besides earning rewards by block proposing and attesting, validators also earned rewards in tips and MEVs which can be accounted for total validator revenue.

How to earn full rewards on ETH staking?

Staking Ethereum, especially solo staking, is an interesting area that has seen rapid development and interest from eth holders.Non-custodial solo staking offered by Chainlabo can make a great difference as users will be able to accrue rewards by staking their eth holdings without having to worry about managing the hardware required to stake eth. Also, stakers do not share their pass key with anyone.

If a novice opts for self (home) staking without knowing the right procedure, there is a high risk of impermanent loss of staker’s ethereum.

Best crypto staking platforms in 2023

Centralized exchange for staking ETH: Top Ethereum staking exchanges include Binance and Coinbase. Users can simply stake their ETH holdings and get BETH on Binance and cbETH (Coinbase ETH) on Coinbase.

Pooled ETH staking: Investors who wish to get a skin in the game without having to stake a huge sum of money can opt for pooled staking which is easy and requires very little effort.

Non Custodial ETH Solo Staking: Holders with 32 ETH or more can opt for the gold standard in Ethereum Staking - Solo staking. It is a non custodial staking as a service platform that offers end to end node set up and maintenance service offering. At Chainlabo, users can stake their ETH using our non custodial staking service. The benefits of opting for solo staking service are : full rewards, no hardware and node maintenance, assisted staking experience and secure staking experience.

Conclusion

In conclusion, the state of Ethereum staking in 2023 reflects significant growth and enthusiasm from the investor community, powered by Ethereum's transition from Proof of Work to Proof of Stake. It's evident that various staking options cater to different investor profiles - centralized exchanges for newcomers, pooled staking services for small-scale investors, and non-custodial solo staking services for those holding larger quantities of ETH.

With a careful understanding of the risks, rewards, and requirements, Ethereum staking provides a compelling option for participating in the world's largest smart contract platform.