As a seasoned crypto investor with a deep understanding of Ethereum’s ecosystem, I am thrilled to witness the remarkable progress made by Ethereum 2.0 staking. Reaching an all-time high of 47.36 million ETH in the Beacon Chain deposit contract is not only an impressive feat but also a testament to the growing confidence and participation in this new phase of Ethereum.
As a crypto investor, I’m excited to share that Ethereum 2.0 staking has experienced remarkable growth recently. A notable achievement was reached this week as the Ethereum deposit contract for staking on the Beacon Chain hit an all-time high of 47.36 million ETH.
Interestingly, this accounts for 33.9% of the entire Ethereum supply.
ETH2 Staking Milestone
Based on information provided by cryptanalysis firm Santiment, the cryptocurrency in question had approximately 33.3% of the total supply as of now, which is significantly higher than the 10.9% it possessed two years ago – nearly tripling its previous stake.
The Ethereum 2.0 Staking Deposit Contract linked to ETH2, currently holds a record-breaking 47.36 million Ether. This represents approximately one-third (33.9%) of the total Ethereum supply. In contrast, just two years ago, it managed only around one-tenth (10.9%) of the entire Ethereum pool.
Santiment noted that Ethereum’s ETH distribution shifted among various wallet groups. Consequently, wallets holding over 10 million ETH, associated with the Beacon Deposit Contract, saw a growth of 23% in Ethereum’s total supply within the past two years.
However, while the value of holdings in some Ethereum wallet categories increased, other categories saw a decrease. For instance, the number of 10,000+ETH wallets (excluding those associated with the Beacon Deposit Contract) fell by 5.3%, and wallets containing 10,000 ETH or less decreased by 17.7%. This trend indicates an expanding interest in Ethereum 2.0 staking.
Impact of Growing Participation in Ethereum Staking
Although there has been a rising trend toward staking, recent data indicates that both staking rewards and inflation rates have surprisingly dipped.
The reward rate signifies the yearly return percentage on staked ETH, akin to the interest accrued from bolstering network security. Conversely, the inflation rate denotes the speed at which the entire ETH supply expands, with fresh ETH issuance as staking rewards fueling this expansionary tendency.
As a crypto investor, I would explain it this way: The lower reward rate for staking means I’ll earn less new ETH per token I stake in the short term. But, considering the long-term perspective, the slower inflation rate implies a more gradual increase in the overall Ethereum supply. This could potentially strengthen the value of ETH in the future as scarcity plays a crucial role in determining asset value.
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2024-07-10 18:41