When ETH 2.0 first came out, there was huge rush to get in the door. Essentially, it meant locking up one’s Ethereum holdings in the new network and then doing a whole lot of waiting. In return for that patience, one was paid something a bit of 4 percent gain for the balance that was staked. It fluctuated a bit in the interim, but for about two years the staked ETH slowly kept collecting a return. Unfortunately, in the same amount of time, ETH dropped from a high heaven of $3,000 per coin to a lowly $1,450 at one of it’s worst points. The staking rewards didn’t even create a dent in that value loss. 

So, now that the Shanghai Fork is come and gone, ETH 2.0 staking lockup has ended, and those who wanted their ETH freed up again can do so, is there any point to staking again? It depends on what one wants from it.

The Savings Account Logic

Generally, ETH still remains a solid coin versus where it was in mid-2019. Up from that much lower point at $600 a coin, ETH has since dropped and risen back up to almost breaking the $2,000 barrier again. So, assuming the worst of the 2021 crypto winter is over, simply holding onto ETH or getting at this time continues to be a solid move. If one does nothing else then, staking in ETH would be akin to using it like a savings account. The value stays relatively safe, and you get rewarded a marginal gain for staking adding a bit more to your balance over time.

This strategy is ideal for the buy-and-hold types. They don’t want extensive risk, they don’t want to make a bad mistake on another coin, and they just want to see their ETH go up over time without effort. Ergo, staking is a conservative “savings account” approach. And, if you’re going to do nothing else with the ETH held, get paid to park it.

The Network View

Unlike the above, the network perspective believes that positioning in ETH is the only solid choice for crypto going forward. This approach believes that Bitcoin won’t ever work as anything more than a value asset, and Ethereum is the only real blockchain network that provides a growth platform for crypto usage that will grow exponentially. Therefore, holding ETH whether in base form or staking or both, invests in a network that is only going to continue to grow. That logic worked well until Vitalik spooked everyone dumping a sizable chunk of his own ETH. Oops.

Other Staking is Too Risky

Most other big staking involves sizable risk in DeFis, which continue to make the news getting hacked because they don’t protect their network presence very well. Where the staking is in particular coins, many lately have ended up being rug pulls, with staking users losing both their expected gain as well as the principal and no recourse. So, ETH staking ends up being the only safe, viable approach to generate income, even if it is not going to be gangbusters in gain amounts.

ETH Remains Viable in Regulatory Moves

Unlike a number of other coins and tokens, ETH is not being directly attacked or threatened through exchange blockages by new regulation. Instead, it is one of the few crypto coins that stays untouchable and allowable. That matters, especially as the federal governments in the US and Europe have now geared up to shut off many exchanges and coins they deem illegal “securities.” So, the logic goes, if you’re going lock up your funds for a while in crypto, you want to do it in one with the least likely chance of being made illegal by law.

ETH staking isn’t going to make most people millionaires by any reasonable chance. But it is a save place for some drip income while your ETH sits, slowing adding to the balance. If you’re not putting your ETH to work, staking makes sense to at least continue to earn some passive income while thinking of what to do next. After all, your crypto isn’t going to grow itself anytime soon.