Staking is the act of committing cryptocurrency to a network (or a contract) in exchange for rewards. On proof-of-stake (PoS) blockchains like Ethereum, Solana, and Cardano, stakers lock up tokens to become validators who propose and attest to blocks. In exchange, they earn newly-issued tokens and transaction fees. Staking can also refer to non-consensus contexts: locking tokens in a DeFi protocol to earn yield.
On Ethereum, running a solo validator requires 32 ETH and a node that stays online. Most retail stakers use staking pools (Lido, Rocket Pool) that aggregate small amounts and run validators on behalf of depositors, distributing rewards proportionally. The user receives a "liquid staking token" (stETH, rETH) representing their stake.
Risks include slashing (punitive token destruction for validator misbehavior), unbonding periods (some chains take days to weeks to unstake), and protocol risk for staking pools (smart contract bugs, custodian failure).
Staking is how proof-of-stake networks secure themselves and how holders earn yield. It is also a major sink for token supply: large staked balances reduce circulating supply, which has price implications.
Staking flows often correlate with macro sentiment. The premium macro endpoint can be combined with on-chain staking data for a fuller picture.