Is Ethereum staking still profitable? Recent data paints a complex picture. Headlines are dominated by reports that almost 80% of staked ETH is at a loss. The January 4 published data further showed that 80% of ETH staked are currently recording losses, a stark reminder of crypto market volatility.

While ETH prices are up 3% on the day, this offers little comfort to the majority of stakers. According to on-chain analytics, there are 10.3 million ETH sitting at a loss, equating to slightly over $16.86 billion. CryptoQuant also says that nearly a third of the Ethereum supply is staked, highlighting the scale of potential losses.

Despite the prevalence of losses, Ethereum staking has remained popular. Over 28% of the supply of ETH has been staked, most often through various staking platforms. So, who *is* making money? The stakers who happen to be part of the 20% still in money are those that staked ETH earlier. Their gains are a testament to the long-term potential, but also a reflection of the risks involved.

Concerns are also growing, with weekly staked ETH having fallen to lowest levels. Some stakers are choosing to unstake their holdings. Since November 7, 2.3% of all staked ETH has been sent back to circulation. This adds further pressure on ETH prices, although the recent price increase suggests a possible short-term rebound.

The big question is: is Ethereum staking still a viable investment strategy? The fact that 80% of all the ETH staked is in the red is a cause for concern. While the long-term potential of Ethereum remains strong, prospective stakers should carefully consider the risks and rewards before committing their ETH. The current market conditions underscore the importance of understanding staking economics and potential impermanent loss.