Best Ethereum Staking Platforms

Top Ethereum Staking Platforms

To maximize your staking rewards and fully utilize liquid staking and restaking options, it is imperative that you select the appropriate Ethereum staking platform. With more than 35 million Ethereum currently staked, the project you choose will affect both your Annual Percentage Yield (APY) and the tactics you can use to boost returns.

The table below looks into the best Ethereum staking platforms, highlighting their unique features and how they can help you grow your ETH holdings.

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1. Bybit

Bybit offers one of the top Ethereum staking platforms through its ETH 2.0 Liquid Staking product. Users can stake ETH and receive stETH from Lido or mETH from Mantle, both of which provide daily staking rewards. Bybit stands out by maintaining zero gas fees, achieved by bundling transactions from multiple users into one, significantly cutting costs.

Staked tokens like stETH or mETH can be used as collateral in Bybit’s Unified Trading Account (UTA), making it more versatile than simple staking. The redemption process for stETH is smooth, allowing users to redeem their tokens for ETH at a 1:1 ratio, though this can take 5-7 days. Additionally, users can bridge on-chain for decentralized finance strategies.

• LSD APY: 3.07% for stETH, 3.22 % for mETH.
• Fees: 0% gas fees, minimal platform fees.
• Top CEX Strategy: Use stETH or mETH as collateral for trading in Bybit’s UTA.
• Top DeFi Strategy: Acquire stETH at zero fees on Bybit → bridge to an L2 like Arbitrum (low on-chain gas fees) → deposit as collateral on a liquidity pool like Merkl's WSTETH-WETH for up to 21.45% APY.

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2. Lido

Lido is the undisputed leader in liquid staking, holding a dominant 69% market share with over $24.6 billion TVL. Users can stake any amount of ETH through Lido and receive stETH, which provides staking rewards with a competitive APY of around 3.5%. Users can also buy stETH on exchanges for immediate exposure without manually delegating ETH to Lido.

Lido's validators generate yield by processing on-chain transactions and securing the Ethereum network. Notably, users don’t necessarily need to stake their ETH directly on Lido; they can also buy stETH on exchanges to start earning staking rewards right away. Lido takes a 10% fee from the staking rewards, which is higher than some competitors.

• LSD APY: 3.07% average in the last 30 days.
• Fees: 10% of staking rewards (for node operators and the DAO Treasury).
• Top DeFi Strategy: Use stETH in a Pendle liquidity pool for higher APY (currently 13.71%), by capturing trading fees, incentives, and fixed yield.

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3. Frax Finance (sfrxETH)

Frax Finance presents frxETH, a stablecoin pegged 1:1 to Ethereum, made to onboard ETH into the Frax ecosystem. While frxETH itself does not accrue staking yield, users can convert it into sfrxETH to earn staking rewards. Out of all the liquid staking derivatives on this list, Frax offers the highest APY at 3.73%, although its TVL is notably smaller at just $364 million.

sfrxETH operates like an auto-compounding token, where the exchange rate between frxETH and sfrxETH increases over time, distributing staking profits from Frax validators to sfrxETH holders. The staking rewards come from Frax's validators, and 8% of the yield is allocated to the Frax ecosystem, benefiting FXS holders.

• LSD APY: 3.73%.
• Fees: 10% fee on rewards (8% for treasury and 2% for slashing insurance fund).
• Top DeFi Strategy: Lend sfrxETH on Fraxlend for 7.17% APY. Can borrow FRAX in return.

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4. Binance

Binance provides an easy-to-use centralized alternative for Ethereum staking through its own WBETH LSD token. As the second-largest liquid staking derivative with $3.55 billion TVL, Binance’s staking service offers a secure way to stake ETH without the need for validator management. WBETH accrues staking rewards as its value increases relative to ETH.

Users can stake, trade, or withdraw BETH on the Binance platform to Ethereum or BNB Smart Chain networks, giving more flexibility compared to some decentralized staking platforms. Binance does not charge staking fees, making it an attractive option for beginners or those who prefer a centralized service.

• APY: 2.98%.
• Fees: 0% platform and gas fees.
• Top CEX Strategy: Users can stake Ethereum for WBETH and use it as collateral on Binance Loans.
• Top DeFi Strategy: Not available at the moment.

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5. EigenLayer

EigenLayer introduces a cutting-edge way to enhance staking yields through restaking, which allows users to redeposit ETH or liquid staking tokens (LSTs) like stETH, rETH, or BETH to secure Ethereum’s Layer 2 networks and Actively Validated Services (AVSs). This creates an opportunity to earn additional rewards beyond native and liquid stakings.

EigenLayer currently has a TVL of $11 billion and recently launched its EIGEN token airdrop. Users can also engage with agent protocols like Ether.fi and Eigenpie, which issue Liquid Restaked Tokens (LRTs). While EigenLayer can provide additional returns, its multi-layered staking structure introduces higher complexity and slashing risks.

• APY: Varies between 2.00% and 4.12%.
• Fees: Protocol-specific fees for restaking rewards (10% to 15% in most cases).
• Top DeFi Strategy: Use Eigenpie LRTs in DeFi like mstETH/wstETH to PancakeSwap on Arbitrum L2 for a 4x EigenPie points boost.

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What is the Safest Way to Stake ETH?

When staking Ethereum, safety depends on the level of control, security, and risk tolerance. Here are the different ways to stake ETH and how they rank in terms of safety:

• Solo Staking (Self-Run Validator): Offers maximum control and decentralization but requires 32 ETH and technical expertise to manage.
• Decentralized Liquid Staking Platforms (e.g., Lido, Rocket Pool): Provides security through decentralization and slashing protection, with flexible entry requirements.
• Centralized Exchange Staking (e.g., Binance, Bybit): User-friendly and convenient, but involves trusting the exchange with your funds.
• Restaking via EigenLayer: Boosts staking yields by deploying staked assets on Layer 2 networks, but comes with increased complexity and slashing risks.

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Is ETH Staking Worth it?

If you're a long-term holder of Ethereum, staking is an excellent way to grow your assets while supporting the network’s security. Since the PoS upgrade, Ethereum has become mostly deflationary, often called "ultrasound money", meaning staking rewards come from transaction fees rather than inflation, as seen with other networks like Solana.

Ethereum staking dynamic changes each year, with even more changes on the horizon. In 2025, the Pectra update (EIP-7251) is set to raise the maximum validator balance to 2048 ETH. Meanwhile, Vitalik Buterin has voiced support for lowering the solo staking requirement to 16 ETH, or even as low as 1 ETH in the future, making native staking more accessible.

While 3-4% APY might not seem like much at first, the power of compounding can work wonders over time. In the example below, we simulate a $10,000 investment in Ethereum staked for 5 years, with a future price projection of $4,800 per ETH (the all-time high from 2021). With compounding, the investment adds $15,925, compared to just $9,310 if simply held.

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What is Slashing in Ethereum?

Slashing in Ethereum is a penalty mechanism designed to ensure the security of the network by discouraging malicious behavior from validators. If a validator is caught being offline for too long, double-signing, or otherwise acting against the rules, a portion of their staked ETH is "slashed" or forfeited. The complexity of the staking platform can increase the risk of slashing.

As of October 2024, 446 validators have been slashed out of approximately 1,606,288 total validators (with 1,075,610 currently active). This represents about 0.04% of all active validators. Notably, most of these slashing incidents are attributed to operational errors rather than malicious intent.

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Bottom Line

Ethereum staking platforms like Bybit, Lido, Frax, Binance, and EigenLayer each offer unique advantages. Bybit provides zero-fee staking, Lido excels with DeFi integrations, Frax delivers the highest APY, and Binance simplifies staking for beginners.

Additionally, new restaking protocols like EigenLayer unlock extra rewards by utilizing innovative technology for Data Availability across blockchain layers. Whether your goal is maximizing yield or ease of use, these platforms present diverse opportunities to grow your Ethereum holdings.