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As Ether Price Hit $3,500, Ethereum 2.0 Sees Record Newbies Flow, Here's Why

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Wed, 05/05/2021 - 14:17
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Vladislav Sopov
Ethereum (ETH) witnessed a number of records yesterday. Here's how Ethereum 2.0 stakers reacted to its rapid price upsurge
As Ether Price Hit $3,500, Ethereum 2.0 Sees Record Newbies Flow, Here's Why
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More than 1,000 new depositors locked their 32+ ETH stakes in Ethereum 2.0's initial funding contract. Some of them may also be involved in Ethereum (ETH) mining.

Cryptoquant: 1,368 depositors joined Ethereum 2.0 deposit contract

According to the Twitter publication by Cryptoquant Korea-based analytical service, a number of new depositors to Ethereum 2.0's initial contract printed a fresh high yesterday, May 4, 2021.

Ethereum 2.0 deposit contract welcomes 1368 depositors
Image via Twitter

Cryptoquant registered 1,368 new depositors who transferred their Ethers (ETH) to the ETH2 deposit contract. This spike in interest in Ethereum 2.0 coincided with a breathaking rally of ETH over $3,500.

Yesterday, the Ethereum (ETH) price set a new record followed by massive liquidations across all derivatives trading platforms. A total of $50 million in Ether shorts vanished in no time.

Related
Ethereum (ETH) Shorts Liquidations Witness All-Time High as Ether Price Surpasses $3,500

Yesterday's session on Ethereum (ETH) markets also printed a record in terms of net futures trading volume. This indicator surpassed $89 billion for the first time in Ethereum's history.

Ethereum miners may have started migration to proof of stake (PoS)

Unlike Ethereum 1.0, the second iteration of this protocol will have its transactions secured by Proof-of-Stake (PoS) consensus. This means that validators (stakers) will be responsible for blockchain integrity instead of miners.

As a result, Ethereum (ETH) mining profitability is coming to an end. According to seasoned Ethereum (ETH) researchers, the mining of Ether will be profitable until the end of 2021.

Related
Here's When Ethereum Mining May End: Developers

As covered by U.Today previously, Ethereum (ETH) engineers recommended that all miners start considering switching to staking processes. That is why the FOMO-driven migration to Ethereum 2.0 gained such traction.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)