Crypto trading has taken the back seat in the digital economy in 2022, with the market remaining under the bears' control for most of the year. Furthermore, traders have seen their faith rocked by the consecutive failures of centralized exchanges. These intermediary marketplaces have been the powerhouse of the industry since its humble beginnings. Now, they seem to crumble under mounting allegations of scams, lawsuits, and solvency concerns. Meanwhile, they make a convincing case for the imminent decentralization of crypto…
Ethereum 2.0 (ETH) smart deposit contract was launched a month ago in anticipation of its move to the proof-of-stake protocol. Since then the number of eth staked has reached record levels and it is now the fourth largest staking network.
$1 billion Worth Of ETH Staked
According to Dune Analytics data more than $1 billion worth of ETH has been sent to the smart deposit contract. This corresponds to 1.5 million ETH, or nearly 1.4% of the total Ether supply.
Ethereum 2.0 is viewed by many as the solution to the current problems facing the Ethereum network. The leading smart contract network has been plagued with rising transaction fees and scalability problems. The rise of DeFi has also placed an increasing strain on the Ethereum Network. Ethereum is the defacto leader in the DeFi sector with more than 90% of DeFi products built on its network.
The rush towards staking eth 2.0 is of course motivated by greed as investors look to make good rewards. It is estimated that the reward for staking on the ETH 2.0 smart contract is around 13% which is enough to tempt investors. This is remarkable for a project that will not start giving rewards until it is fully launched in two years time. This therefore shows the confidence that investors have in the future of the Ethereum network.
Ethereum, The Fourth-Largest Staking Network
Surpassing the $1 billion mark means that Ethereum is now the fourth largest staking network in the crypto space. The biggest staking network is Polkadot (DOT) which has more than 691 million DOT staked at the moment. This corresponds to 67% of its supply and approximately $3.5 billion.
It is followed by Cardano (ADA) with 65% of its total supply staked and valued at $3.37 billion. Just ahead of Ethereum is Tezos (XTZ) with an equivalent of $1.3 billion in XTZ staked on its network. All of this shows that the enthusiasm for staking ETH is growing among the crypto community. If investors are prepared to wait two years for their rewards, we can only imagine how many will participate in the future.