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Eth 2.0 contract reaches 3M ETH staked ($5,4 billion)

Photo of: Nathan VDH
by Nathan VDH

Ethereum 2.0 is already a great success. Indeed, its deposit contract is hosting more than 3 million ETH in staking, the equivalent of 5.4 billion dollars.

About two weeks before the launch, Ethereum 2.0 was far from receiving enough ETH in staking on its deposit contract. Indeed, 10% of the 524,588 ETHs needed were present. DeFi and Ether valuation were playing against ETH 2.0.

In appearance only. By the deadline, the quota was met and the first phase of the new Ethereum network could start. And since then, the success of the future generation of the blockchain seems indisputable.

The figures speak for themselves. According to Etherescan data, the Ethereum 2.0 Beacon Chain deposition contract now has more than 3 million Ether staged. The value of the Ether that has been committed peaks at around 5.4 billion dollars.

After only a few months, this balance sheet underlines that the interest in Ethereum remains intact. It also demonstrates the need of investors and companies for a new generation of the network filling the limits of the current system.

Ethereum V1 almost systematically suffers from congestion, which causes trading costs to explode, much to the delight of the miners. With Ethereum 2.0, the rules change however. The blockchain is based on a proof-of-stake consensus where validators succeed the miners.

And to obtain the title of validator, a user must deposit at least 32 ETH on the deposit contract. But through staking on ETH 2.0, users can also access passive returns.

Different exchanges offer their customers the opportunity to invest their Ether in staking on the new network. This is notably the case for Kraken, and for amounts higher than 32 ETH. Wallets, including MyEtherWallet, offer custodial services by operating a node on behalf of their customers.

But if the staking is already in service, it will take at least 2 years for the ETH 2.0 promises to become reality. The ETHs invested are invested in Ethereum’s Beacon Chain. This will act as a bridge between the current network and Ethereum 2.0 until the complete migration.

While waiting for its actual production, users and applications have to deal with Ethereum’s weaknesses in terms of processing. The saturation is recurrent, accentuated even more by the success of DeFi and the valorisation of Ether.

In January, activity on the Ethereum blockchain enabled the miners to achieve record sales of $830 million. Gas fees alone accounted for $504 million in revenue.