ETH 2.0 Update: $22 Million Worth of ETH Being Staked Everyday
ETH 2.0 rollout saw phase 0 of its multi-year roll-out commence on December 1st with the launch of the Beacon chain. The new proof-of-stake-based ethereum network has been the talk of the crypto town as many see it as a revolution in the field of blockchain scalability, once fully functional the ETH 2.0 network would be capable of processing tens of thousands of transactions through shading.
Being a PoS based network staking services would be available on the platform for one and all. When ETH 2.0 released the possible returns on the staked tokens many were not impressed, however that hasn’t deterred ETH enthusiasts from staking their tokens. The total amount of staked ETH has reached over 1.2 million more than double the threshold amount needed for a timely beacon chain launch.
The total amount of ether in the ETH 2.0 Staking contract has already moved over 1% of the total market cap of ethereum. At present, the number of ETH being added to the staking contracts at an astonishing rate of 40k ETH/day valued at over $22.5 million.
The eth2 deposit contract is adding ~40k ETH a day. from ethtrader
Will Hype Around the ETH 2.0 Last Long Enough?
The staking reward on ETH 2.0 is not among the best however despite that there has been a constant inflow of Ether to new contracts from Defi as well. The new-PoS network is expected to elevate the ethereum ecosystem to new highs especially Defi. Defi which is considered one of the biggest success stories from 2020 also led to a lot of network congestion on Ethereum at its peak. The new network would help Defi to scale very rapidly and expand its market and services further.
Many crypto proponents see ETH 2.0 as the supercomputer that was always promised for ethereum users and one of them is Tyler Winkelov, the co-founder of Gemini crypto exchange. Tyler noted that at present bitcoin is stealing all the handlines because of the mammoth rally over the past month however he drew attention towards ETH 2.0 which he claimed everyone must pay close attention to in coming years.
#Bitcoin steals most of the mainstream headlines, but anyone who knows what’s up was paying close attention to Ethereum $ETH last week. It reached the threshold for ETH 2.0 beacon mainnet. A watershed moment in the history of crypto. Let the upgrades begin!
— Tyler Winklevoss (@tyler) December 5, 2020
The hype around ETH 2.o at present is understandable but it is also important to understand that it would take at least two years for the network to become independent and fully functional and the real equation is whether it can maintain a similar hype through all th
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An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.