Over $ 1 billion worth of ethereum is now locked in ETH 2.0, the first phase of a major network upgrade that went live earlier this month. Data provided by Etherscan shows that the ETH 2.0 deposit contract is approximately 1,543,937 ether. Given the cryptocurrency’s current price of $ 648.26, this is equivalent to $ 1,001,428,416.75 worth of ethereum. It’s a significant achievement since it’s less than a month since the launch of ETH 2.0.
Deposits to the contract are often made in increments of 32 ETH by independent users and also crypto companies providing staking services. For example, Kraken sent approximately 100,000 ETH to the contract at the beginning of December on behalf of its clients. Other leading exchanges like Gemini and Coinbase has also launched its ETH 2.0 staking features for their customers that will allow them to donate their crypto assets and win rewards.
Ethereum staking rewards in the form of annual interest are around 13.15%. This implies that a single share of the minimum 32 ETH would bring in at least $ 2,650 over the one-year period at current ether prices.
Notably, the amount of ether sent to the contract has been steadily increasing since the eth2 deposit contract launched on November 4. November 24 had been set as the due date for the 524,288 ETH required in order to activate ETH 2.0 Chain Beacon.
Since November 24, the contract deposits have increased 115%, resulting in today’s total of 1,543,713. Furthermore, the price of skyrocketing ethereum may have boosted further interest to be contributed on ethereum 2.0.
The new proof-of-proportion (PoS) ethereum upgrade will introduce a number of key network improvements, including allowing ethereum to process more transactions per second – addressing notorious scalability and pricing issues gas basically.
However, Phase 0 ETH 2.0 is far from complete. Although the first few weeks since the highly anticipated launch have been promising, there is still much work to be done before moving on to the next stage of development.