According to analytics company Santiment, the amount of ETH placed for staking on the Ethereum 2.0 network was 47.38 million. This is 33.9% of the total supply of the cryptocurrency.
The figure has more than tripled from about 10.9% of coins held in the ETH2 Beacon deposit contract two years ago, analysts said, to now hold more than $140 billion in assets.
🤯 The ETH2 Beacon Deposit Contract, used for staking deposits for Ethereum 2.0, now holds an all-time high of 47.36M ETH, good for 33.9% of the entire supply, and more than tripling since the 10.9% it held two years ago. pic.twitter.com/aCnEhfClfb
— Santiment (@santimentfeed) July 10, 2024
The amount of ether being staked on Ethereum 2.0 is growing as more users commit funds to becoming validators. They lock up their ETH to secure the network using the new proof-of-stake (PoS) consensus algorithm. In return, they receive a reward for staking, although ETH remains a deflationary cryptocurrency because the upgrade involved burning some of their ETH to pay transaction fees.
Analysts also noted changes in ETH storage. Over the past two years, wallets holding more than 10 million ETH in the Beacon deposit contract have increased their share by 23%. Long-term ETH investors now own about 78% of the coins in circulation. This means that users who have held their ETH for longer than a year now control the majority of the ETH issued.
Earlier, Ethereum co-founder Vitalik Buterin proposed the introduction of “Rainbow Staking” to solve the problem of network centralization. According to Buterin, this will motivate all categories of service providers with different levels of responsibility and income to participate.
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Source: Cryptocurrency
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