The picture shows stacked Ethereum coins. Ethereum is the largest platform for dApps and SmartContracts. Ethereum is a crypto currency.
More than 1% of the circulating ETH offers are now clocked on Ethereum’s new Beacon Chain just one week after its launch.
The chain, which is part of a broader, multi-stage transition to a proof-of-stake mechanism, already included over 1.15 million ETH from 3,215 stakers yesterday. As of yesterday, the cumulative value of the deposited assets thus amounts to over 683 million dollars.
Ethereum 2.0 and its bumpy start
By now, word has certainly got around to just about everyone that Ethereum 2.0 will involve a shift from the current proof-of-work design approach to a proof-of-stake consensus mechanism. This will allow traders to stake their ETH (for a period of time not yet determined) to achieve variable annual returns.
As the second largest block chain by market capitalisation, Ethereum hosts the largest ecosystem of block chain applications. With this next set of improvements, Ethereum plans to initiate waves of new and advanced enterprise and independent applications.
The move would make the network faster, more scalable and cheaper to use. Perhaps just in time, if the mood towards crypto-currencies remains positive and the community experiences greater institutional interest, which is currently focused more on Bitcoin (BTC).
The Beacon Chain required at least 524,000 ETH to get off to a successful start, with the current 1.15 million ETH representing a surplus of 219%. More than 26,000 independent transactions were sent to the depository agreement.
Despite the current key figures, Ethereum 2.0 has had a slow start. In the first phase, slightly more than 50,000 ETH managed to do so despite massive interest in the protocol to the deposit agreement. In the weeks that followed, however, the mood brightened, especially as the incentives to generate liquidity on Uniswap expired.
1% of all ETHs in circulation already in step
As can be seen in the figure below, deposits increased significantly after the event of 19 November, when the incentives for liquidity mining at Uniswap expired. 41,000 ETH were deposited on 20 November, with twice that amount, 88,000 ETH, finding its way to the network on 21 November.
Ethereum, ETH deposits for Ethereum 2.0
ETH deposits for Ethereum 2.0. Source: Dune Analytics.
However, the largest Ethereum 2.0 deposits were made on 24 November with over 244,000 ETH deposits in a single day, although the total number of Stakers was lower. Overall, this means that more than 1% of ETH’s total circulating offer is already being clocked. It can be strongly assumed that the percentage will increase further in the coming weeks and months. In any case, it will be interesting to see to what extent the resulting shortage of supply will affect the Ethereum course.
Vitalik Buterin celebrated this milestone in his latest tweet and wrote
1% of the entire ETH is now in the deposit contract! Updated statistics: the decentralisation figures are slightly worse than last time, but only because they now correctly treat Bitcoin Suisse, with its multiple addresses, as one entity. Still much better than expected!