Ethereum has now officially managed to launch Ethereum 2.0 with the Beacon Chain. Ethereum 2.0 Phase 1 started on time on 01.12.2020. And now it is clear that interest in Ethereum staking is growing steadily.
Ethereum 2.0 with more than 1,000,000 deposited ETH
The threshold required for the timely activation of Ethereum 2.0 has already been reached on 24.11.2020. After investors deposited the necessary minimum amount of 524,288 ETH on 24 November, new milestones have now been reached.
Within a few days, the deposited amount of ETH has almost doubled compared to the minimum quantity and now stands at more than 1,000,000 ETH for the first time.
There is now over 1 million ETH ($600mil+) in the eth2 deposit contract ? pic.twitter.com/OvjjaKbljY
— Anthony Sassano | sassal.eth ? (@sassal0x) December 4, 2020
The consequences of ETH staking on ETH price are easy to describe.Â
The more ETH is being staked, the lesser it will be available for trading until the start of the next phase of ETH 2.0.
Depending on when the next phase of ETH 2.0 comes into play, it could take months or years to access the deposited Ethereum again.
If the number of deposited ETH continues to increase, this could undoubtedly impact the Ethereum price because of the demand/supply law.
The proportion of staked ETH has reached the 1% mark. Now 1% of all Ethereum is in the deposit contract. That is another significant achievement.
1% of all ETH is now in the deposit contract!
Updated stats; the decentralization numbers are a bit worse than last time but only because they now properly treat Bitcoin Suisse with their multiple addresses as a single unit. Still doing far better than I expected! pic.twitter.com/B0ck5YGTUk
— vitalik.eth (@VitalikButerin) December 6, 2020
What is certain is that Ethereum is taking a huge step. A shift from an existing proof-of-work consensus mechanism to a proof-of-stake mechanism is like open-heart surgery.
The complete system is changing, and all the advantages and disadvantages of PoS systems will come into play.
Investors will likely see a high incentive to deposit their ETH in the new proof-of-stake mechanism. With an expected return that can also be in the double-digit range, this aspect of PoS is an exciting opportunity to invest in ETH staking.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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