Ha ha! I fucking said over and over last year that this was going to happen with proof of stake.
Holders have much less incentive to risk deploying their capital productively when they can just earn a guaranteed risk-free reward through staking.
https://fortune.com/2023/09/16/ethereum-developers-slow-staking-source-of-reliable-crypto-returns/
Nice. If they had half a mind, they would price staking according to necessity, not at a high-ass fixed rate, to incentivize productive use of assets.
Right. They got greedy and made the return too big. There's not much overhead cost to parking your funds in eth staking. So huge margins.
Look at Bitcoin mining. Super thin margins for most miners. It's an efficiency battle.
