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Over $25 Billion Worth of ETH Staked on Ethereum 2.0 Deposit Contract

Ethereum Whales Make A Big Splash, Transfer 100,000 ETH in 24 Hours
Ethereum Whales Make A Big Splash, Transfer 100,000 ETH in 24 Hours

The Ethereum community seems to be betting more on the largest altcoin despite the dips that have been reported across the broader market. Metrics from Etherscan show that the amount of ETH deposits on the Ethereum 2.0 staking contract has surged significantly in recent days.

Etherscan is a leading analytics platform for ETH. According to the analytics firm, the Ethereum 2.0 deposit contract holds more than 7.7 ETH tokens with a total value of around $25 billion.

In August 2021, the ETH 2.0 deposit contract amount reached $20 billion for the first time. The surge started to accumulate more in the following weeks. The Ethereum community has stated over 1.2 million ETH on the deposit contract in the past five weeks.

Rise attributed to Developments

The ETH network upgrade started in December 2020 when the Beacon Chain was launched. After the launch, the ETH community staked around 900,000 ETH on the deposit contract, and in the first three days after the launch, this number hit more than 1 million.

The recent increase in the number of staked coins on the network has been attributed to the increasing value of ETH. When the Beacon Chain contract was launched in 2020, ETH was trading at only $580. However, this coin’s value has increased significantly this year, where it peaked at $4300.

However, the coin retreated during the May dip but picked again last month, and it is trading at around $3200 at the time of writing. The coin’s market cap has also increased significantly over the past year, and it has reached more than $375 billion.

Recent Developments on Ethereum

The Ethereum network has been undergoing several developments to transition the network from a proof-of-work mechanism to a proof-of-stake mechanism. In August, ETH launched the London Hard Fork upgrade that introduced a token burning mechanism. The upgrade is among the proposals put forward to help ETH scale to layer two.

Earlier this month, Cathie Wood, Ark Invest’s CEO, stated that the ETH network upgrade was a good thing. “Our confidence in Ethereum has gone up dramatically as we have seen the beginning of the transition from proof-of-work to proof-of-stake,” Wood stated.

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