Staked ETH Volume

Definition ∞ Staked ETH volume represents the total quantity of Ether (ETH) that users have deposited into the Ethereum 2.0 Beacon Chain for network validation. This Ether is locked to support the network’s proof-of-stake consensus mechanism, contributing to its security and transaction processing. In return, stakers receive rewards for their participation. The volume indicates the level of commitment to the network’s long-term stability.
Context ∞ Staked ETH volume is a significant metric for assessing the health and security of the Ethereum network, particularly following the Merge and Shanghai Upgrade. Discussions often concern the rate of new staking deposits and withdrawals. A critical future development involves liquid staking derivatives, which offer greater flexibility for staked assets.