In a new development, more than 1.1 million test Ether(ETH) tokens are now staked by validators on Ethereum’s 2.0 Medalla test network. The benchmarked validator participation which was 66% is now trending at 74%. The close to 38,000 validators have ensured that the staking balance of 32 ETH is maintained. This comes when the total USD value locked in the DeFi is closing in on an $8 billion figure.
Ethereum 2.0 Testnet Experiences bounces upwards both in Staking and Confidence
According to a few last week’s reports, the validator participation in ETH2’s Medalla test net was shaky and unsteady. The participation on an average went up now posting at 74% significantly above the 66% threshold. With collectively more than 38,000 active validators, more than 1.1 million test ETH have been staked to validate Medalla. Blocks are being added adhering to every norm while validators are also earning fair returns for their staked ETH.
Looking at the current trends, ETH staking confidence is high for Medalla presently. But is a test network, a bundle of issues can be cropped up which can get difficult later. Since there will not be any real value exchange, the reversal of code or any rollback would not pose any imminent burden. For the Ethereum network to change its consensus protocol from Proof-Of-Work to Proof-of-Stake, it is a major step and everything is stated to happen as planned. It might take some time before the community participants familiarize themselves with the novel setup. That being said, the conversion and change would lead to better staking security and confidence which is the need of the hour.
DeFi craze surging
We have all already witnessed the ICO mania back in 2017, but now it seems DeFi is taking over and repeating the craze. A lot of changes have taken place in the last one month as the popular ecosystem has swelled up considerably in its value.
Increase in DeFi users in a two-year period
Since the first week of August, the total value locked in DeFi witnessed a jump of over 85% in 27 days from $4.2 billion to $7.88 billion on August 30. The DeFi lending platform Aave makes up 21.86% of that value, dominating its position to number one. When the news was reported about DeFi crossing $4 billion previously, Maker was dominant with a 31.9% share.
Uniswap has recorded a 50% increase in asset deposits in the last 24 hours. Yearn Finance also has contributed massively to the growth as YFI crossed Bitcoin’s buying price by a huge margin. YFI is now trading at $32,246 with BitMEX’s Arthur Hayes commenting that it will touch $100k soon. Another significant parameter, daily volume, and market caps are closing in one the $1 billion mark because yield farming has become highly popular with evident craze prevalent all across. By not investing in YFI, investors are already experiencing FOMO. The ongoing DeFi circus with ETH2 on the anvil, raises the question – Will Ethereum be able to emulate its success story like it did in 2017? Only time will tell.