Ethereum News Today: SharpLink Seeks Higher Yields by Staking on Ethereum’s New Layer-2 Ecosystem

SharpLink Gaming, a major holder of Ethereum with $3.6 billion in ETH, has announced plans to stake an undisclosed portion of its holdings on the Ethereum layer-2 network, Linea, following its mainnet launch on September 10. Joseph Chalom, co-CEO of SharpLink, emphasized the company’s strategy to diversify staking vehicles to seek higher-yield opportunities as its treasury matures. Currently, the firm is staking nearly all of its ETH through custodians such as Anchorage and Coinbase. However, Chalom noted that exploring staking on Linea could offer enhanced risk-adjusted returns, aligning with the company’s broader objective to support Ethereum and its associated layer-2 ecosystems [1].

The move aligns with SharpLink’s membership in the Linea Consortium, a group of organizations tasked with stewarding 75% of the LINEA token distribution. Chalom described the consortium as “mission-aligned,” highlighting its shared goal to ensure the success of Linea. He further stated that the token launch would “bootstrap” the network, with over 80% of the supply allocated to on-chain projects. This strategy is intended to drive real-world usage and activity within Ethereum-aligned initiatives, which in turn is expected to benefit Ethereum’s price and ecosystem [1].

The Linea network itself has been designed to strengthen Ethereum by incorporating mechanisms such as native yield on bridged assets and transaction fee-based ETH burns. These features aim to counter the narrative that layer-2 networks siphon value away from Ethereum’s mainnet. Linea is built by Consensys, a firm led by Ethereum co-founder Joe Lubin, who also serves as a chairman on SharpLink’s board of directors. This close relationship underscores the strategic alignment between SharpLink and Linea [1].

The broader Ethereum ecosystem is also preparing for the launch of the LINEA token, with 9.36 billion tokens set to be distributed to 749,662 eligible wallets starting September 10. Notably, no allocations are reserved for the founding team or venture capital firms, with 85% of the total supply directed toward community and ecosystem growth. The airdrop is activity-based, rewarding participants through on-chain engagement and liquidity provision. This approach reflects a commitment to decentralization and user-driven growth [2].

SharpLink’s decision to explore Linea-based staking options signals a broader trend among large Ethereum holders to diversify their staking strategies. As the firm continues to expand its treasury and influence, its actions are likely to have ripple effects across the Ethereum layer-2 landscape. By prioritizing projects that align with Ethereum’s long-term goals, SharpLink aims to contribute to the network’s sustainability and value appreciation [1].

The Ethereum network itself is witnessing increased activity in staking and tokenization, with analysts suggesting these factors could drive the price of ETH to new heights. While external forecasts are not included here, SharpLink’s strategic deployment of its ETH holdings reflects a data-driven and risk-conscious approach to capital management. The firm’s emphasis on yield optimization and ecosystem support illustrates a growing trend among institutional players in the crypto space [3].

Source:

[1] SharpLink Will Explore Staking Portion of $3.6 Billion ... (https://finance.yahoo.com/news/sharplink-explore-staking-portion-3-162046340.html)

[2] Ethereum's Biggest Airdrop Since ETH: 9.36B LINEA ... (https://www.cryptoninjas.net/news/ethereums-biggest-airdrop-since-eth-9-36b-linea-tokens-set-to-hit-749k-wallets/)

[3] SharpLink Gaming plans to stake part of its ETH on the ... (https://www.chaincatcher.com/en/article/2203778)