Tag: proof-of-stake

  • BNY Mellon to Offer In-Custody Crypto Staking for Institutions via Galaxy Partnership

    BNY Mellon to Offer In-Custody Crypto Staking for Institutions via Galaxy Partnership

    BNY Mellon has announced plans to integrate crypto staking into its digital asset custody platform through a collaboration with Galaxy, the bank confirmed on August 4, 2026. The proposed service would allow eligible institutional clients to earn staking rewards while keeping their assets within BNY’s custody system, pending regulatory approval.

    Under the arrangement, Galaxy will provide the staking infrastructure and technical support, enabling clients to participate in proof-of-stake blockchain networks without transferring their tokens to a third party. BNY said the service would maintain the same controls, governance standards, and asset protections expected by institutional investors.

    “As digital assets continue to evolve, clients want more than safekeeping alone — they want a broader set of capabilities delivered through an institutional-grade model,” said Carolyn Weinberg, BNY’s chief product and innovation officer.

    Galaxy will also serve as a design partner for BNY’s broader digital asset platform, contributing to infrastructure development beyond staking. The Nasdaq-listed firm, which already uses BNY’s custody platform as an early client, brings expertise in proof-of-stake networks and digital asset operations.

    Steve Kurz, Galaxy’s global co-head of digital assets, said: “The future of financial markets will be built on open, programmable rails, and the institutions that move first will define the era that follows.”

    BNY launched its digital asset custody service in 2022 and continues to expand blockchain-related services. The bank manages tens of trillions of dollars in assets under custody and administration. It also plans to move core transfer agency record-keeping onto blockchain, enable around-the-clock settlement for U.S. Treasuries by 2027, and test tokenized Treasuries on a private blockchain before the end of 2026.

    Ethereum, the largest proof-of-stake network by market value, remains a key reference point for staking services. At press time, Ethereum traded near $1,868, with a market value of about $225 billion. However, BNY did not specify which networks or tokens the staking service would support, nor did it provide a launch date, fee structure, or client eligibility details.

  • On-Chain Activity Surges for Ethereum, Solana, and Avalanche Despite Steep Token Price Declines

    On-Chain Activity Surges for Ethereum, Solana, and Avalanche Despite Steep Token Price Declines

    Ethereum, Solana, and Avalanche have recorded significantly higher on-chain activity and lower transaction costs over the past year, even as their native tokens lost roughly half or more of their value. A new staking report from Bitwise attributes the improvement to larger blockspace, cheaper transactions, and rising institutional participation. However, token prices remain far below their 2025 peaks, signaling that blockchain performance and market sentiment are no longer moving in lockstep.

    More Activity at Lower Cost

    Bitwise found that activity expanded while user fees declined across all three proof-of-stake networks. The report attributes this shift mainly to protocol upgrades rather than weaker demand. Ethereum, Solana, and Avalanche increased network capacity to process more transactions at lower cost. As a result, users gained cheaper access while developers received more room to build applications.

    Previous market cycles often treated congestion and expensive transactions as signs of strong demand. Now, greater capacity allows networks to handle heavier use without creating the same fee pressure. Lower costs also reduced protocol revenue because the networks earn much of their direct income from transaction fees. Developers accepted that trade-off to improve scalability and encourage wider adoption.

    Institutional Staking, Declining Yields

    Proof-of-stake networks depend on validators who lock digital assets to secure transactions and receive staking rewards. Institutional investors drove much of the additional Ethereum entering validator pools during the second quarter. Exchange-traded products, corporate treasuries, and other large holders increased their staking exposure.

    More than 40 million ETH—roughly one-third of Ethereum’s circulating supply—had entered staking by the end of the period. BitMine, the largest public Ethereum treasury company, reported staking nearly 4.9 million ETH from total holdings of about 5.8 million ETH.

    However, staking yields continue to decline because rewards now reach a larger group of validators. More participants share the available token issuance and transaction-fee income. Bitwise estimates that about 93% of Ethereum staking rewards and more than 90% of Solana rewards came from newly issued tokens.

    That structure increases token supply and dilutes holders who do not stake. Meanwhile, lower fee revenue raises further questions about long-term staking economics.

    Liquid staking products also continue attracting attention because they let holders earn rewards while retaining usable tokenized assets. Investors can deploy those assets as collateral, supply them to lending markets, or place them in liquidity pools. Institutions can therefore combine staking income with broader capital use.

    Token Market Performance

    Developers continue launching applications, institutions add staked assets, and users remain active across decentralized finance platforms despite weaker token valuations. The trend suggests that practical blockchain use now plays a larger role in network activity. Meanwhile, token prices remain tied to market sentiment and wider economic conditions.

    For developers, lower fees and greater capacity support broader adoption. For investors, falling yields, inflation-funded rewards, and weaker fee income create different measures for assessing returns.

    Ethereum, Solana, and Avalanche processed more activity at lower costs despite sharp token-price declines. Institutional staking also expanded, although yields and protocol revenue fell. The data show that investors must evaluate network usage, token issuance, fee income, and staking returns separately from short-term market performance.

  • Ethereum Node Concentration in US and EU Raises Network Resilience Concerns, Cambridge Study Finds

    Ethereum Node Concentration in US and EU Raises Network Resilience Concerns, Cambridge Study Finds

    Ethereum’s decentralization is facing renewed scrutiny as new research shows that nearly one-third of node activity sits in the United States. The Cambridge Centre for Alternative Finance said about 31% of Ethereum node activity is hosted in the U.S., while roughly 39% sits across the European Union, excluding the United Kingdom.

    Researchers said the network remains globally distributed overall. Even so, they warned that concentration across jurisdictions and cloud providers needs close monitoring.

    Geographic clustering draws attention

    The Cambridge Centre for Alternative Finance said Ethereum’s node activity is spread across several regions. Still, the U.S. and EU account for a large share of the network’s infrastructure. That distribution matters as Ethereum’s consensus design depends on broad participation. The network can tolerate many failures, but researchers noted that if more than one-third of validators go offline at once, finality can stop.

    The study also said validators sit behind different nodes, which makes exact measurement difficult. As a result, researchers said the link between hosting location and validator concentration remains hard to map with precision.

    Cloud providers enter the debate

    The report also found strong concentration among commercial cloud providers. Hetzner, Amazon Web Services, and OVHcloud host a significant share of Ethereum nodes, according to the research. That pattern raises resilience questions beyond the blockchain protocol itself. If a few providers carry much of the load, infrastructure risk can grow even when the network code remains distributed.

    The findings also revive a legal debate that has followed Ethereum for years. In 2022, the U.S. Securities and Exchange Commission argued in court filings that Ethereum transactions could fall under U.S. securities jurisdiction since much of the validation activity occurred in the United States.

    Energy use falls after The Merge

    The Cambridge research also updated Ethereum’s environmental profile after its shift to Proof-of-Stake. It estimated annual electricity use at about 7.9 gigawatt-hours. That figure marks a drop of roughly 99.98% from Ethereum’s energy use before The Merge in 2022. The network’s transition sharply reduced its power demand.

    Researchers also estimated that more than 56% of the network’s electricity now comes from sustainable sources. That share exceeds the current global average. Ethereum moved from Proof-of-Work to Proof-of-Stake in September 2022. Since then, the network has drawn more institutional attention through tokenization, stablecoins, and decentralized finance.

    The Cambridge Centre for Alternative Finance periodically studies blockchain infrastructure, energy use, and decentralization. Its latest report extends that work by examining both geographic distribution and hosting concentration.

    What’s Next?

    Cambridge research found that Ethereum node activity remains globally distributed but is concentrated in the United States and the European Union. The study also identified reliance on major cloud providers and confirmed Ethereum’s lower energy consumption after The Merge. Monitoring infrastructure distribution remains important as blockchain adoption expands.

  • Bitmine’s Ethereum Staking Generates $45.7M, Accounting for 98% of Quarterly Revenue

    Bitmine’s Ethereum Staking Generates $45.7M, Accounting for 98% of Quarterly Revenue

    Bitmine Immersion Technologies has reached a major milestone as Ethereum staking became the company’s largest source of income. According to its latest quarterly report, Ethereum staking and validator services generated $45.7 million in revenue, making up 98% of the total quarterly revenue of $46.5 million.

    Shift from Bitcoin Mining to Staking

    The latest figures show how quickly Bitmine has transformed its business model. Instead of relying mainly on Bitcoin mining, the company now earns almost all of its revenue through Ethereum staking. This change reflects a broader trend across the crypto industry, where more companies view Ethereum staking as a reliable way to earn regular income without depending solely on crypto price swings.

    Legacy Businesses Now Play a Very Small Role

    Bitcoin self-mining brought in only $624,000 during the quarter, while consulting services added another $168,000. Compared to the $45.7 million from Ethereum staking, these businesses now contribute very little. Revenue grew more than 22 times year-over-year, from $2.05 million in the same quarter last year.

    MAVAN Platform Drives Revenue Growth

    The launch of the MAVAN (Made in America Validator Network) platform in March 2026, along with the acquisition of Australian staking infrastructure company Pier Two Holdings, fueled the rapid growth. Pier Two contributed about $3.53 million in staking revenue. MAVAN supports both Bitmine’s own Ethereum holdings and institutional clients’ digital assets.

    Millions of ETH Now Generate Rewards

    As of July 12, 2026, Bitmine held 5.77 million ETH, with 4,917,189 ETH (about 85%) actively staked. These holdings represent about 4.8% of Ethereum’s total circulating supply. Company Chairman Tom Lee said that once the entire Ethereum treasury enters the MAVAN platform, projected annual staking rewards could reach approximately $284 million, based on a recent annual staking yield of roughly 2.70%.

    Ethereum Attracts More Institutional Investors

    Bitmine’s success highlights a broader institutional shift. Ethereum staking provides a steady income while allowing investors to retain ownership of their ETH. Unlike Bitcoin mining, staking does not require large amounts of electricity or expensive hardware. Ethereum’s transition to Proof-of-Stake in 2022 reduced energy consumption by about 99.98%, making it more attractive to environmentally conscious investors.

    Profit Challenges Persist

    Despite record revenue, Bitmine reported a net loss of $83.6 million, largely due to derivative-related expenses, operating costs, and accounting adjustments tied to its expanding crypto treasury. The company also cited risks such as changes in staking rewards, validator performance, network upgrades, regulations, and market volatility.

    Ethereum Staking Continues to Expand

    The Ethereum network now has more than 920,000 active validators. The recent Pectra update allows validators to reinvest staking rewards directly into their validator accounts, improving operational efficiency. As tokenization, decentralized finance, and blockchain infrastructure evolve, Ethereum staking services are likely to grow further.

    Why This Matters

    Bitmine’s transformation shows how Ethereum staking is becoming a major revenue source for crypto companies. The shift underscores growing institutional adoption, more predictable blockchain income, and the industry’s move away from traditional cryptocurrency mining.

    Outlook

    With 98% of total quarterly revenue from staking, 5.77 million ETH under management, and nearly 4.92 million ETH staked, Bitmine is now one of the largest institutional participants in Ethereum’s Proof-of-Stake ecosystem. If current yields hold, annual staking rewards could reach $284 million. Although market risks remain, Bitmine’s pivot illustrates how blockchain companies are increasingly turning to staking as a long-term source of recurring revenue.

  • Ethereum’s Neutral Infrastructure: Why Openness Gives It a Lasting Edge in Blockchain

    Ethereum’s Neutral Infrastructure: Why Openness Gives It a Lasting Edge in Blockchain

    Ethereum stands apart in the blockchain industry because its neutral infrastructure keeps the network open, decentralized, secure, and accessible for everyone. Recent upgrades, lower fees, and strong adoption continue to strengthen its long-term position.

    Key Takeaways

    • No company or authority controls who builds or operates on the Ethereum network.
    • Recent upgrades have pushed transaction fees below $0.02 under normal conditions.
    • Ethereum’s $205 billion market value and growing enterprise adoption signal long-term confidence.

    The blockchain industry has grown rapidly in recent years, but not every network follows the same approach. Some give more control to a small group of companies or developers, while others focus on keeping the system open and fair. Ethereum’s neutral blockchain infrastructure functions like public infrastructure—no single company, government, or organization decides who can build or use it. Every developer, business, and user gets equal access. Since its launch, Ethereum has prioritized openness over control, creating trust across the industry and helping it grow faster than many competing blockchains.

    Ethereum Has the Largest Developer Ecosystem

    Recent industry reports show Ethereum still hosts the largest number of smart contract developers worldwide. More than 30% of all active Web3 developers work within the Ethereum ecosystem. Developers prefer Ethereum because the network remains open and does not favor specific companies or projects. Every builder gets the same infrastructure access, with no special privileges for large organizations. This environment fosters natural innovation. Thousands of decentralized applications already run on Ethereum, including finance platforms, blockchain games, NFT marketplaces, artificial intelligence projects, and many other services. This ecosystem scale keeps Ethereum ahead of newer blockchain competitors.

    Proof-of-Stake Made Ethereum Even Stronger

    Ethereum became even stronger after The Merge, one of the biggest upgrades in blockchain history, which moved the network from Proof-of-Work to Proof-of-Stake. Before this change, Ethereum depended on energy-intensive mining systems. After the upgrade, it relies on validators who help secure the network by staking ETH instead of using mining machines. More than 120 million ETH are currently in circulation, and staking participation continues to grow across independent validators worldwide. This system spreads control across a larger number of participants, reduces dependence on centralized operators, and helps protect Ethereum’s decentralized structure. Ethereum’s market value currently remains above $205 billion, firmly keeping it in second place behind Bitcoin in the global crypto market.

    Lower Fees Have Improved Ethereum’s Position

    For many years, Ethereum faced criticism for expensive transaction fees. However, recent upgrades have significantly improved this situation. Research from mid-2026 shows major efficiency improvements across Ethereum Mainnet and Layer 2 networks. In the past, average transaction fees often exceeded $2 during busy periods. Today, fees frequently remain under $0.02 under normal conditions. Layer 2 scaling systems built around Ethereum have reduced average transaction costs by more than 95%, making the network much more affordable for developers and businesses while maintaining strong security standards. This balance between affordability and security gives Ethereum a major advantage over competing blockchain networks.

    Ethereum Allows Different Applications to Connect Easily

    Ethereum’s open structure allows applications to interact without needing permission from any central authority. A decentralized finance application can connect directly with an NFT marketplace, a gaming platform can work with a payment protocol, and artificial intelligence systems can interact with blockchain-based financial products.

    Ethereum Continues to Improve for the Future

    One major upgrade planned for 2026 is the Glamsterdam hard fork, which focuses on improving network performance while keeping decentralization intact. The plan includes raising gas limits toward 100 million, improving transaction execution speed, and introducing systems such as Enshrined Proposer Builder Separation (ePBS).

    Institutions Continue to Trust Ethereum

    Regulatory clarity around Ethereum-based exchange-traded products has encouraged greater participation from financial institutions. Even during periods of market volatility in 2026, Ethereum continues to attract enterprise adoption. Large institutions increasingly view Ethereum as foundational digital infrastructure rather than just another cryptocurrency.

    Why This Matters

    Ethereum’s neutral infrastructure prevents centralized control, ensuring the network remains fair, open, and unalterable. For institutions and developers, this absolute censorship resistance makes it the only trustworthy foundation for long-term global financial systems and applications.

    Neutral Infrastructure Gives Ethereum Long-Term Strength

    Many blockchain networks focus mainly on speed or low fees, often by giving greater control to a small number of validators or centralized teams. As blockchain technology becomes more important in global finance and digital infrastructure, neutrality becomes a major advantage.

    Frequently Asked Questions

    1. What makes Ethereum different from other blockchain networks? Ethereum operates strictly as neutral public infrastructure, meaning no single company, government, or central group controls who can build on the platform or access its global network services.
    2. What exactly is neutral blockchain infrastructure? It is a decentralized design principle ensuring the underlying network remains entirely open, fair, and accessible to all global users and developers, with zero special corporate privileges.
    3. How has Ethereum improved its network efficiency recently? Major structural upgrades and advanced Layer 2 scaling systems have drastically reduced average transaction fees by over 95% while fully preserving the blockchain’s core security standards.
    4. Why do software developers heavily prefer building on Ethereum? Ethereum hosts the world’s largest Web3 developer ecosystem because it provides an open, stable architecture where every engineer receives identical infrastructure access without needing centralized permission.
    5. Why do large financial institutions trust the Ethereum ecosystem? Global enterprises trust Ethereum because its proven decentralized design, robust protocol security, and improving regulatory clarity make it the ideal foundational digital infrastructure for long-term institutional deployment.
  • Why Ethereum Stays a Leading Crypto Investment in 2026 Amid Rising Rivals

    Why Ethereum Stays a Leading Crypto Investment in 2026 Amid Rising Rivals

    Ethereum maintains its position as the second-largest cryptocurrency by market cap, even as newer blockchains like Solana, Avalanche, and NEAR Protocol offer faster transactions and lower fees. Despite these challenges, a combination of institutional demand, continuous network upgrades, dominance in decentralized finance (DeFi), and emerging AI use cases keeps Ethereum at the forefront of the crypto market.

    Institutional Confidence Remains Strong

    Major companies continue to accumulate Ethereum despite broader market weakness. BitMine Immersion Technologies purchased 71,179 ETH in a single week, pushing its total holdings above 4.7 million ETH (worth approximately $9.8 billion). Similarly, SharpLink resumed buying after an eight-month pause, signaling long-term institutional conviction.

    Constant Network Upgrades

    Ethereum’s development roadmap remains active. The upcoming Glamsterdam upgrade focuses on speed, efficiency, and validator improvements, while the earlier Pectra upgrade enhanced staking rewards and validator systems. These regular enhancements ensure Ethereum evolves faster than most competitors.

    Unmatched DeFi Dominance

    Ethereum remains the backbone of decentralized finance. Billions of dollars in value are locked across Ethereum-based lending platforms, decentralized exchanges, NFT marketplaces, and stablecoin systems. Other blockchains have built DeFi ecosystems but none have matched Ethereum’s liquidity and developer tooling.

    Security and Staking

    With over 920,000 active validators, Ethereum’s proof-of-stake network is highly decentralized and secure. Staking reduces circulating supply and provides yield for holders, further supporting long-term value.

    Future Innovation: AI and Beyond

    Ethereum is poised to benefit from emerging technologies like decentralized AI. The ERC-8004 standard for autonomous AI agents and networks could create new demand for ETH as the underlying settlement layer.

    Technical Outlook

    As of late June 2026, ETH trades between $1,550 and $1,650. Analysts watch the $1,668 level closely; sustained holding above this point could signal a recovery, while a break below may lead to further downside. Short-term volatility persists, but long-term fundamentals remain intact.

    Conclusion

    Institutional buying, regular upgrades, DeFi leadership, and a massive developer base make Ethereum irreplaceable in the crypto ecosystem. While faster rivals attract retail attention, Ethereum’s deep liquidity, strong security, and innovative pipeline keep it among the top crypto assets to watch in 2026.