Ethereum 2.0 is already the fourth largest network for staking in the crypto space
Ethereum unlocked staking a month and a half ago in anticipation of switching to Proof-of-Stake. And the success is obvious: it has become the 4th largest staking network, although investors will have to wait two years before receiving their rewards.
Ethereum 2.0 – a revolution in the world of cryptocurrencies
Most of the cryptocurrency ecosystem depends on the unified Ethereum network. Ethereum itself hosts a huge number of applications and tokens, which it has struggled to support since the advent of decentralized finance (DeFi). The current technical capabilities of the blockchain no longer meet its needs, transactions have become very expensive and take a long time to complete.
Therefore, the developers worked on a major update of Ethereum 2.0. This new version of the protocol, which is still in development for several years, has already been put into operation in a limited version, phase 0. When switching from Proof of Work (pow) to Proof of Stake (PoS), the update is already working, and traders are eligible to participate in staking, which allows Ether holders to receive passive income.
In total, almost $ 1 billion was sent in ETH. This corresponds to 1.5 million rubles. ETH, or almost 1.4% of the total Ether supply. This is a plebiscite of the project, which, of course, is dictated by greed. Currently, ETH stacking offers a reward of about 13% – enough to tempt investors.
It should be noted that the latter send their ETH to the network, even if the rewards are not unlocked. In fact, it will take at least two years before the profits generated from the ETH offering are paid out to depositors. Thus, it shows their confidence in the future of the payment network.
However, the availability of stacking is less (the entry threshold) is too high. To be eligible for staking, you must have at least 32 ETH. In addition, this investment opportunity requires sufficient technical training to maintain the network node independently.
These barriers complicate the placement of Ether, and do not allow most investors to use it. However, solutions have been proposed to meet these financial and technical requirements and transfer their ethers to a trusted third party.
Ethereum – the fourth place in the staking industry
Will Ethereum be able to outshine its competitors in the long run? It is quite possible. The largest stacking network at the moment is polkadot (DOT), which now has 691 million dot stacks. This is 67% of the total supply, and is about $ 3.5 billion. It is followed by Cardano (ADA), which has a share of 65.53%, which is estimated at $ 3.37 billion.
Right in front of Ethereum is Tezos (XTZ). An amount equivalent to $ 1.3 billion in XTZ is currently placed on the network, and this amount is also growing.
All this indicates some hype around ETH staking. If investors are willing to wait two years for their rewards, it is assumed that a much larger number of them will participate when the reward is still issued.