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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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Leon Waidmann | Onchain Insights
@leon-waidmann
Absolutely the goal isn’t just “more stakers,” but smarter capital efficiency and a healthy balance between yield, decentralization, and utility. Pectra may boost staking mechanics, but we still need to ask: what’s the optimal security threshold before yield compression backfires? Excited to see how this will play out! Nevertheless I believe initially it will lead to a higher Ethereum staking rate!
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xh3b4sd ↑
@xh3b4sd.eth
In terms of higher staking participation, my hunch would be that staking ETFs will generate more demand than Pectra, simply because the ETFs cater to a new market audience, while Pectra is only relevant for those already staking. I think I am with you on the issuance debate. What I have said early on was that any changes to the supply curve have to take into account how much economic value we actually have to secure. Because only if you know how much your house is worth, only then can you calculate the insurance to cover it. So unless we are finding a way to issue rewards based on the objectively derived economic security required, I am against it. I am against all "Jerome Powell" style issuance changes, because this thing is far larger and far too important for applying just another guess.
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