As the Eth2 hard fork approaches, the total amount staked in Eth2 deposit contracts soars to new heights
Ethereum’s Eth 2.0 has exceeded the 12.764 million mark, accaording to statistics from Glassnode, as the layer one network nears the transition to a proof of stake blockchain.
There have been 398,000 distinct validators depositing Ether on the beacon chain since the start of Eth 2.0 staking in November 2020, with 19,800 more validators joining in the last 30 days or so. At today’s pricing, the staked Ether is worth around $23.2 billion, or 10.73 percent of the entire supply.
To activate validator software, you must stake 32 Ether. Proof of stake consensus depends on “stakers” to confirm transactions by operating nodes in the same manner as proof-of-work blockchains rely on miners to validate transactions. As a result, the blockchain is kept safe and the stakers are rewarded with Ethereum. Validators stake on Eth 2.0 and get yearly returns of 4.14 percent, according to statistics from Staking Rewards.
With “Serenity,” the name given to Ethereum’s new proof-of-stake consensus mechanism, the Ethereum network will transition from a proof-of-work to a proof-of-stake model. There is a new emphasis on increasing the network’s scalability and efficiency. There are several flaws in the present PoW network, the biggest of which being the exorbitant gas expenses.
In terms of blockchain networks, Ethereum is still the most developed and draws the most web 3 projects. With so many transactions taking place on the network, it may occasionally get congested, which can lead to excessive pricing.
The Beacon chain, The Merge chain, and the Shard chain represent the three stages of Ethereum’s move to PoS. Smaller testnets sit above these stages, letting developers test apps and features in a controlled environment. The public testnet known as “Ropsten” is where Eth 2.0 is now testing before the August merging.