Ethereum 2.0 smart deposit contract has exceeded $ 1 billion in total. This milestone continues to steadily increase deposits to the smart contract over the past month.
1.5 million ETH Stacked
A total of about 1.5 million ETH has been placed in the smart deposit contracts according to the information on smart contract deposit direction. Despite the bullish run in the crypto market, more money has gone toward the Ethereum 2.0 deposit contract in recent weeks. This is after the launch of the long-awaited Ethereum beacon contract on December 1st.
The launch that took place after meeting the minimum requirement of 524,000 in November started phase 0 of the Ethereum 2.0. the phase is expected to be the beginning of the gradual evolution of the Ethereum blockchain from its current work test protocol to the share test protocol.
Since then, deposits have been making their way in chunks of 32 eths by pundits and oversight service providers. Several exchanges have started running staking services for their customers / Kraken recently sent 100,000th for staring at their customers. Also, the over 30,000 active verifiers for Ethereum 2.0 far outnumber those recorded for any testnet in the crypto space.
Risks associated with staking
The rewards for early depositors are relatively high, around 15% per annum. However, the rewards will diminish as more verifiers join the network. Participants will not be able to withdraw their ETH until the current Ethereum mainnet has “merged” with this new blockchain, a process that could take several years. It is also important to remember that verifiers can be penalized if their goal implementation is impaired.
Some exchanges like Coinbase are already preparing the possibility of maintaining Eth2 staring at their platform. But this alternative will also not be without risk. In November, the Amazon Services breach affected thousands of websites, including the US exchange. Such an event would also have hurt Ethereum 2.0 node operators.
Nonetheless, the growing deposits indicate high confidence in the crypto community that Ethereum 2.0 will be used successfully. Much depends on the success of the update as Ethereum is plagued with rising transaction fees and scalability issues.
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