More than 10% of the Ethereum’s supply has been already sent into the ETH 2.0 deposit contract, in anticipation of Ethereum’s upgrade to proof of stake. This is more than $35 billion in staked value at current prices.
12,334,098 of Ethereum is generating the income from the contract at the time of writing this article, according to Etherscan. In comparison, the total supply of Ethereum is estimated at about 120,642,170 ETH.
The smart contract includes staking ETH on the Beacon chain, which is the Ethereum network future spine. Its chain will merge eventually with ETH to act as its coordination mechanism, and it allows to operate using stake proof.
The stake proof is a consensus model which allow users to instruct blocks by staking their cryptocurrency holdings, rather than energy spending. If the user choose to create a block, a staker will earn a block subsidy, allowing user to earn an effective “yield”.
The current holdings of the contract, make the network as the second largest in terms of staked value, next to Solana SOL. It seems to be growing super fast, after exceeding 10 million Ethereum ETH in March.
However, the yield compared to the other networks is considered low, hitting at 4.3% against 5.41% of Solana SOL and 5.96% of Terra.
ETH 2.0 was supposed to be launched in July 2022, but one of the developers has stated that user will have to wait for a bit longer than that. This upgrade has been delayed several times over the past years, but the developers are keen to make the upgrade happen to reduce ETH’s energy footprint.
Correspondingly, Bitcoiners rigidly stand by the work model proof, and insists proof of stake is centralizing.
Ethereum ETH is trading in green at $2,843.15 by the time of writing this article.