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ETH 2.0 deposit contract exceeds 10% of total supply

ETH 2.0 deposit contract exceeds 10% of total supply, Crypto Trading News
In anticipation of Ethereum‘s upgrade to Proof of Stake, over 10% of the ETH supply has been sent to the Ethereum 2.0 custody contract. That’s over $35 billion in stakes at current prices.

  • According to Etherscan, at the time of writing, exactly 12,334,098 ETH are generating revenue through the contract. For comparison: The total supply of ETH is estimated at around 120,642,170 ETH.
  • The smart contract involves staking ETH onto the beacon chain – the future “backbone” of the Ethereum network. It chain will eventually merge with Ethereum to act as its coordination mechanism and allow it to operate using Proof of Stake.
  • Proof of Stake is a consensus model that allows users to construct blocks by staking their cryptocurrency holdings instead of using energy. When a staker is chosen to create a block, they receive a block subsidy that allows users to earn an effective “revenue”.
  • The current holdings of the contract mimic the network Solana currently the second largest in terms of value. It seems to be growing fast, having just hit 10 million in March ETH has exceeded.
  • However, its return on investment is low compared to other networks, standing at 4.3% versus Solana’s 5.41% and Terra’s 5.96%.
  • Ethereum 2.0 was supposed to launch in July this year, but a developer has since confirmed that users will likely have to wait longer. The upgrade has been delayed multiple times over the years, but developers are keen to reduce Ethereum’s energy footprint.
  • In contrast, bitcoiners stand steadfastly with the proof-of-work model, insisting that proof-of-stake is insecure and centralizing.

Source: Crypto News Deutsch

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