Ethereum Staking Rewards Quarterly Overview

The staking rewards rate on the Ethereum network remained around 3% during the third quarter of 2024, following a slight drop from 3.5% in the first quarter.

The Block's data dashboard indicates that the Ethereum Staking Reward Reference Rate, which reflects the average annual returns for validators, is approximately 3.1%.

Analysts point out that these rewards are lower compared to other proof-of-stake networks. According to Kaiko analysts, "Ether staking yields are now lower than those from major Layer 1 protocols such as Cosmos, Polkadot, Celestia, and Solana, where yields range from 7% to 21%." However, lower staking rewards can help reduce inflationary pressures on the network.

Kaiko Research also reported that the Ethereum validator queue has averaged less than a day throughout the year since August, contrasting sharply with the 45-day peak in June 2023.

The Block's dashboard echoes this trend, showing a significant decline in daily Ethereum validators in the entry queue. In mid-April 2023, the queue peaked at over 95,000, dropping to just 473 currently.

Additionally, Kaiko Research highlighted that Lido, Ethereum's leading staking provider, holds about 28% of the total staked ETH market share and has experienced modest inflows year-to-date, although lower than the previous year. "Despite a decrease in staking inflows, Lido’s staked ETH (stETH) supply has stabilized this year, averaging around 9.6 million ETH, signifying a slowdown in ETH deposits into the Beacon Chain contract."