5.5% Of The Ethereum Total Supply Is Now Staked In ETH 2.0
There are currently 6.6 million ETH staked in Ethereum 2.0, which represent more than 5% of the total supply of the second largest cryptocurrency.
Staked ETH Reach 5% Of Total Supply
Currently the ETH 2.0 network has 200,000 validators accounting for about 6.6 million in Ethereum coins staked. The current annual percentage return (APR) is hovering around 6.1%.
The chart below shows how the total ETH value staked has grown over the past year:
The ETH deposit contract reaches new milestone | Source: CryptoQuant
Ethereum staking supply is going up quite fast, and it has now crossed 6 million in ETH, as seen above. The chart below shows the ETH 2.0 staking rate over the same period of time.
The Ethereum staking rate continues to gradually move up | Source: CryptoQuant
The ETH 2.0 locked in staking contracts is now 5.5% of the total supply of the cryptocurrency, according to the graph above.
The current 6.1% APR is expected to go down as the staking supply increases. Once 10 million ETH is locked in the deposit contract, the APR will come down to about 4.9%
Proof Of Stake (PoS)
ETH 2.0 uses proof of stake (PoS) as its consensus system instead of the traditional proof of work (PoW) mechanism, which is still in use for cryptos like Bitcoin and Ethereum (Core) for reaching consensus. Validating nodes are called miners, which require high computing power to hash blocks.
PoS mechanism, on the other hand, requires little computing power. Nodes, called stakers here, only need to stake some of their ETH.
As mining farms with high-end GPUs consume a lot of energy, PoS has emerged as a more efficient, cleaner solution.
Crypto miners have also added to the GPU shortage that’s primarily caused by the global chip scarcity. Nvidia CEO Jensen Huang commented on PoS and the shortage around this year’s E3 season.
Ether Price
At the time of writing, ETH’s price floats around $2,285k, up 29% in the last 7 days. Here what Ethereum’s price development looks like over the past year:
ETH’s price catches an uptrend | Source: ETHUSD on TradingView
Ethereum has started shooting up after a crash earlier in the month. It’s not yet clear if the crypto can keep the momentum up and go on a bull run.
Bitcoin’s price has an effect on other cryptos like ETH too. While BTC seems to be on a rise right now possibly because of the rumors that Amazon will accept crypto payments, it’s unclear how that would continue next as Amazon has now confirmed the rumors false.
