The staking yield on the Ethereum network remained around 3% throughout the third quarter of 2024, although it slightly slid from above 3.5% in July. Analysts say the staking rewards remain lower than other proof-of-stake chains. However, low staking rewards reduce inflationary pressures on the network. The Ethereum validator queue has averaged less than a day and rarely exceeded four days all year since August. The daily number of Ethereum validators in the entry queue has significantly reduced. Ethereum staking provider Lido's stETH has seen a modest increase year-to-date, lower than the increase in 2023.

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The staking yield on the Ethereum network remained around 3% throughout the third quarter of 2024, although it slightly slid from above 3.5% in July.The Block's data dashboard shows that the Ethereum Staking Reward Reference Rate, a metric representing the average annual returns that validators on the Ethereum network receive, is about 3.1% annually.Analysts say the staking rewards remain lower than other proof-of-stake chains. "Ether staking yields are now lower than those offered by other major Layer 1 protocols like Cosmos, Polkadot, Celestia, and Solana, which range between 7% and 21%," Kaiko analysts statedHowever, it's worth noting that low staking rewards reduce inflationary pressures on a given network.Kaiko Research analysts further noted in a report that the Ethereum validator queue has averaged less than a day and rarely exceeded four days all year since August, a sharp contrast to the 45-day peak in June 2023.The Block's data dashboard suggests a similar trend, indicating a significant reduction in the daily number of Ethereum validators in the entry queue. In mid-April 2023, the Ethereum validator entry queue peaked at over 95,000, but this number has now decreased to just 473.Amid onchain indicators pointing to apparent reduced network activity and demand for Ethereum staking, Kaiko Research pointed to data that showed that Ethereum staking provider Lido’s stETH, which represents about 28% of the total staked ETH market share, has seen a modest increase year-to-date, lower than the 90% increase in 2023."While staking inflows have tapered, growth in the supply of the largest Ethereum staking provider, Lido, has plateaued. Lido’s staked ETH (stETH) supply has remained stable this year, averaging around 9.6 million ETH—indicating a general slowdown in the amount of ETH deposited in the Beacon Chain contract," they added.

Ethereum's Staking Rewards Remain at 3%, Lower Than Other Proof-of-Stake Chains