- Scrutiny of Ethereum 2.0 has revealed that 2.25 million deposits of Ethereum (ETH) have been made into the former’s contract address
- Upto 66,360 beacon chain validators have been generated due to Ether’s progression to PoS from PoW
- Initial investors have so far received an interest of 21.6% annual percentage rate (APR) which is far greater than the current depositors interest of 9.4% APR
The launch of Ethereum 2.0’s beacon chain has led to 2.25 million ETH deposits into the Eth2 contract address, indicating the developing trust in the highly anticipated rollout of ETH2.
Ethereum 2.0 Has Garnered Billions in Deposits
The Ethereum Foundation launched Ethereum 2.0 at the start of December 2020. In less than two months the network has witnessed an estimated deposit of more than 2.25 million ETH tokens, into the contract address of Ethereum 2.0. The upgrade has witnessed massive increase in the creation of beacon chain validators as well, which currently boasts of 66,360 individuals. This number indicates the increasing confidence in Eth2, which can be attributed to the transition of the network from Proof-of-Work (PoW) to Proof-of-Stake (PoS).
PoS can be viewed as a different option available along with PoW. The former is comparatively more efficient in terms of energy as well as provision of protected algorithms required in blockchain protocols. Meanwhile, PoW blockchains (such as ETH1 and Bitcoin) remunerate miners post receiving solutions to various cryptographic puzzles. This brings legitimacy to the transactions and helps in the creation of new blocks. Despite providing protection to the blockchain, this process requires colossal amounts of energy.
Individual Investors Have Higher Stakes in Eth2
As per the information provided by Dune Analytics, an internet-based platform to garner data about Ethereum, increased amounts of ETH are being traded as well as staked by individual investors. This number is significantly higher when compared to stakes made by solitary addresses with huge balances. The transition is noteworthy because the latter contributed towards the major flow into Eth2 contracts till the first half of January.
The dollar measure of ETH deposited into the Eth2 contract remains at roughly $3.75 billion. Or 2.5% of Ethereum’s absolute market capitalization, with 4,864 novel investor addresses adding to the aggregate sum of ETH traded on the new network.
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