Over $5 Billion Deposited in Ethereum 2.0 Smart Contract

News / 11.02.2021

More than $5 billion has been staked in the Ethereum 2.0 smart deposit contract. This surge in deposits makes Ethereum 2.0 the third-largest staking network. 

Ethereum 2.0 continues to attract Stakers

Ethereum 2.0 smart deposit contract has continued to receive deposits despite hitting the minimum mark to launch. According to data from the launchpad dashboard, the amount of ETH currently staked is 3 million ETH. This represents about 2.8% of the total supply and is valued at $5.2 billion. 

This is remarkable, considering that stakers will be unable to unlock their tokens for at least a year. The staked tokens will only be released when phase 1.5 of the serenity upgrade merges the ETH 1.0 chain with ETH 2.0.  

Nevertheless, enthusiasm continues to grow as more crypto users stake their tokens in the hopes of making high yields. Stakers earn a 10% annual yield, which has increased in value in recent weeks due to the bull run. Ether is valued at $1,700, which is more than 200% since ethereum launched the smart deposit contract in December. 

Ethereum 2.0 will adopt the proof-of-stake (PoS) method instead of the current proof-of-work (PoW) approach. The new process provides a new way to incentivize industry players to keep records of blockchain transactions and maintain their integrity on the system’s back-end.

Ethereum takes third place among staking networks.

Ethereum 2.0 continues to move up the rankings and is now third place among staking networks. Cardano (ADA) tops the rankings with 22.4 billion ADA ($18.8 billion) staked on its network. This represents 42% of the total ADA tokens in circulation. 

Interoperability smart contract platform Polkadot (DOT) comes in second with 653 DOT staked. This represented 60% of all DOT in circulation and equated to $14.6 billion. Tezos (XTZ) is just behind Ethereum with 686 million XTZ ($2.5billion) staked and equated to 79% of its total supply. 

These figures speak for themselves and show that investors trust staking their tokens on smart contract platforms. It seems evident that the Ethereum 2.0 network will continue to attract users who believe in this upgrade and wish to invest in future rewards. One can imagine that by 2022, the number of validators will increase considerably following the first harvest of staked rewards.

Olowoporoku Adeniyi is a blockchain enthusiast and crypto evangelist. Currently he loves all things crypto and covers happenings within the blockchain space.