Staking and Ethereum 2.0 are very close to launch!
The big move for the Ethereum blockchain is approaching and exchanges in the ecosystem have provided support for ETH staking. As the community prepares for the launch of Ethereum 2.0, a highly scalable network upgrade expected from proof of work (PoW) to proof of participation (PoS), the update will increase the critical performance of the Ethereum network, allowing it process a large number of transactions.
The PoS consensus will allow those with participation in network tokens to have the right to earn rewards for validating blocks. Even if someone can stakar the token, the right to validate blocks and earn rewards will be determined by the proportional value of the stacking.
Therefore, someone staking 1% of the total total value can validate only 1% of all blocks, whereas, depending on the time the staking was blocked, it can also take into account the validator’s selection protocol. Participation in Ethereum 2.0 was presented in a simple format, with a minimum limit of 32 ETH for participation. Validators will be required to run their own validator score and the rate of return is expected to be between 4% and 10%.
According to data provided by Arcane Research, more than 18 million out of a total of 111 million are held by exchange addresses. This can affect overall staking statistics, as smaller investors are accounted for only as part of the exchange balances.
Binance, one of the largest exchanges in the world, announced that users will be able to actively participate in staking on the platform. Together with Kraken and Crypto.com, Binance runs stake pool programs, where the exchange deposits users’ funds in a wallet, which is used for staking. This puts pressure on exchanges to allow staking once Ethereum 2.0 is active.
The number of Ethereum portfolios containing at least 32 ETH increased by 13% over the year. While many users have decided to run their own validators, others are still choosing between running an independent node, joining a staking pool, or using staking provider services.
When analyzing Nansen’s data, it was observed that these portfolios represented approximately 95% of all ETH. To put things in perspective, 105 million out of a total of 111 million ETH supplies were held by these 120,000 Ethereum portfolios.
As the update approaches, users have shown signs of strategic sizing of the portfolio above the stake limit. Although 32 ETH was the minimum limit to enable staking, the size of the common portfolio above 32 ETH was a round number like 50.40 and 100, behind the numbers between 33 and 40.