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Leon Waidmann | Onchain Insights
@leon-waidmann
🚨SOLANA just flipped ETHEREUM in staking market cap! • Solana: $56.7B | 65% staked • Ethereum: $56.2B | 29% staked But here’s what most people miss: Ethereum staking is about to explode. Why? One word: Pectra 👇🧵 ⸻ 1. Big unlock for big stakers 🔷 EIP-7251 raises validator cap from 32 → 2048 ETH 🔷 Whales and institutions can stake more with less infra 🔷 Rewards now compound on the full balance ⸻ 2. Staking becomes seamless 🔷 EIP-6110: deposits recognized in minutes 🔷 Less waiting = more participation from retail and funds ⸻ 3. Yields go up — automatically 🔷 Auto-compounding boosts effective APY 🔷 No manual restaking needed 🔷 Better returns, same effort ⸻ If ETH staking hits 40%: 🔷 48M ETH staked 🔷 At $1,980 = $95B staking market cap → That’s +69% from today → Clean flip of Solana ⸻ Pectra isn’t just a protocol upgrade. It’s a capital unlock that could reshape ETH’s entire economic layer. Don’t fade the shift.
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xh3b4sd ↑
@xh3b4sd.eth
I think some of the takes here miss the mark for what is actually relevant. It is true that Pectra will improve staking economics. The same amount of stake requires far fewer resource, making it more capital efficient. The question we have to ask n the research side is how much economic security is "enough". We don't want to have more than 30% of ETH staked for various reasons. Staked ETH doesn't increase Ethereum's utility function, which is where the actual value accrual takes place. And further, more staking increases centralization risks while at the same time reducing real yield. At a certain point the amount of economic security becomes less important. Because what really matters is the quality of this security, and what it actually secures.
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CryptoPlaza🎩🧑🌾 OG449
@especulacion
I spoke with the Ethereum Foundation research team during ETHCC about this very topic — particularly the idea of reducing staking rewards. In my view, this is clearly a negative measure for the demand side of ETH. There seems to be a lack of sensitivity in understanding what the core sources of demand for ETH actually are — and in the end, these are what define its price. I’m not sure I would frame it strictly as a "security" issue — that’s another debate — but what’s clear is that a significant drop in price negatively impacts the broader ecosystem. There was no serious analysis of how Dencun affected demand, and now once again, we’re seeing very little reflection on the potential market impact of critical upgrades like Uniswap V4 and the launch of Unichain. In this context, I believe that disincentivizing staking — even if it’s for ostensibly valid reasons — is ultimately a harmful decision for the Ethereum ecosystem unless it's backed by a rigorous analysis of its downstream effects.
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CryptoPlaza🎩🧑🌾 OG449
@especulacion
https://mirror.xyz/valuecrypto.eth/bVGKKuE6HGwE6gCTIngkH2OjXysLVEYC-8a3FGBPx8A
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Leon Waidmann | Onchain Insights
@leon-waidmann
Reducing incentives without fully modeling demand-side behavior could unintentionally weaken ETH’s price floor. We need security, yes but also a thriving asset economy that supports the entire ecosystem.
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xh3b4sd ↑
@xh3b4sd.eth
On the demand side I would frame it differently. Blob space increased Ethereum's real estate. If anything, Dencun flushed out speculation based on some funny DCF type of thinking, which frankly doesn't work well for public blockchains anyway. Crypto's forward P/E ratios are completely retarded. Ethereum has all the fundamentals. Price is short term noise to me. On the issuance curve I would agree with you. We can chose to maximize or minimize certain aspects of the system. Instead of artificially minimizing supply, we should focus on maximizing demand. There is only one supply mechanism. But there are dozens, if not hundreds of demand mechanisms, most of which we have probably not even discovered, less understood.
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