Ethereum 2.0 now has over 6.6 million ETH wagered. That’s more than 5% of the total cryptocurrency offering.
The ETH 2.0 network now has 200k validators responsible for around 6.6 million in Ethereum staking. The current annual percentage return (APR) is around 6.1%.
Here’s a graph that shows how the total amount of ETH bet has changed over the past year:
As the chart above shows, the Ethereum staking offer is increasing rapidly and has now surpassed 6 million on ETH.
Now, below is a graph showing the ETH 2.0 staking rate over the same time period.
According to the graph, the ETH 2.0 locked in stake contracts is already 5.5% of the total cryptocurrency offer.
As mentioned before, the APR is now around 6.1%. This value tends to decrease as the staking offer increases. When 10 million ETH are blocked in the deposit contract, the APR will drop to around 4.9%
Rise Proof of Stake
ETH 2.0 uses proof of stake (PoS) as its consensus system, instead of the traditional proof of work (PoW) mechanism.
Crypts like Bitcoin and Ethereum (Core) use PoW to reach consensus. Validation nodes are called miners and require high computing power for hash blocks.
On the other hand, the PoS engine requires little computing power. The nodes, called stakers here, only need to stake part of their ETH.
As mining farms with state-of-the-art GPUs consume a lot of energy, PoS has emerged as a cleaner and more efficient solution.
Cryptocurrency miners have also contributed to the GPU shortage, mainly caused by the global chip shortage. Nvidia CEO Jensen Huang commented on PoS and the shortage around this year’s E3 season.
At the time of this writing, ETH’s price has hovered around $2,300, a 32% increase over the past 7 days. Last month, cryptocurrency increased 25% in value.
Here is a graph showing the trend of the Ethereum price on the last year:
Ethereum started firing after an accident earlier in the month. It’s still unclear whether crypto can keep up the momentum and go on a bull run.
Bitcoin price also affects other cryptocurrencies such as ETH. While the BTC appears to be on the rise now, possibly because of rumors that Amazon will accept crypto payments, it’s not clear how this would continue as Amazon has now confirmed otherwise.