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ETH 2.0 On Track: Ethereum Users Deposit Staggering 42,272 ETH

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Sat, 11/07/2020 - 21:15
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Joseph Young
ETH 2.0 deposits surpass 42,272 ETH as the pace of new deposits puts the major Ethereum network upgrade on track
ETH 2.0 On Track: Ethereum Users Deposit Staggering 42,272 ETH
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According to the data from the on-chain market analysis firm CryptoQuant, the eth2 address received 42,272 ETH. It comes merely two days after Ethereum co-creator Vitalik Buterin announced the ETH 2.0 contract address.

ETH 2.0 is a major network upgrade for the Ethereum blockchain. It has the potential to exponentially expand the scalability of the blockchain. This would allow Ethereum to process more transactions every second, allowing larger decentralized applications (Dapps) to perform more seamlessly.

The main component of ETH 2.0 is staking. In simple terms, staking allows users to allocate their ETH holdings to Ethereum. By doing so, users can verify transactions on the blockchain, replacing miners. In return, they receive incentives for locking their funds into the ETH 2.0 contract.

ETH 2.0 deposits on the Ethereum blockchain network
ETH 2.0 deposits on the Ethereum blockchain network. Source: CryptoQuant

ETH locked in ETH 2.0 shows the optimism around Ethereum

Based on the market price of Ethereum as of November 7, 42,272 ETH is equivalent to nearly $19 million.

The data shows that many Ethereum holders have already decided to allocate their holdings to participate in ETH 2.0.

As Buterin explained in his blog post, ETH 2.0 is estimated to return 15% for stakers. Since stakers cannot move or spend their ETH during staking, albeit they can stop staking at any period, there is an incentive system for stakers.

Danny Ryan, the coordinator of ETH 2.0, announced the release of the eth2 address on November 4. He said there need to be 16,384 32-ETH deposits prior to December 1. He wrote:

“Today, we released v1.0 of the eth2 specs, including the mainnet deposit contract address – 0x00000000219ab540356cBB839Cbe05303d7705Fa. eth2 will have a MIN_GENESIS_TIME of 1606824000 (or for those of you who don’t think in unix time – December 1, 2020, 12pm UTC). To trigger genesis at this time, there must be at least 16384 32-ETH validator deposits 7 days prior to December 1. If not, genesis will be triggered 7 days after this threshold has been met (whenever that may be).”

The eth2 staking address is still far from matching the minimum amount to commence ETH 2.0. Still, the pace at which ETH is flowing into the eth2 staking address is positive.

How many ETH is needed for ETH 2.0 mainnet launch?

Edward Morra, a cryptocurrency trader and analyst, said 524,288 ETH is needed for the mainnet launch to occur. He said:

“42272 $ETH deposited and there are 176 validators. In order to launch the mainnet, there should be 524288 ETH staked and 16384 validators participating.”

So far, a substantially high number of ETH have been allocated to the eth2 address. There are still nearly 20 days until the deadline, which puts ETH 2.0 on track.

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About the author

Joseph Young is an analyst based in South Korea that has been covering finance, fintech, and cryptocurrency since 2013. He has worked with various recognized publications in both the finance and cryptocurrency industries.