Staked ETH Utility

Definition ∞ Staked ETH Utility refers to the various functions and benefits derived from Ether (ETH) that has been deposited into the Ethereum 2.0 consensus layer. This staked ETH secures the network, validates transactions, and participates in block production. Participants who stake ETH receive rewards, contributing to the network’s economic security and decentralization. The utility extends beyond simple holding, providing active participation in the protocol.
Context ∞ The Staked ETH Utility has significantly expanded following Ethereum’s transition to Proof-of-Stake, creating a new economic layer within the ecosystem. Discussions often revolve around the liquid staking derivatives that allow users to access their staked capital while maintaining network participation. News frequently covers the growth of staked ETH, its impact on network security, and the evolving landscape of liquid staking protocols. This utility is a key driver of Ethereum’s economic model and its ongoing development.