Ethereum stakers continue to increase their stake in the network. According to a study by BanklessTimes, the number of Ether staked on Ethereum’s Eth 2.0 staking contract has surpassed 13 million, increasing by 18% in Q2.
The Ethereum network is preparing to upgrade to a proof-of-stake consensus model, which will see Ether tokens used to secure the network and confirm transactions.
Under the current proof-of-work consensus model, Ethereum is kept secure by miners who confirm transactions and include them in the blocks. However, validators will verify transactions and include them in the blocks under the new POS model.
The total number of coins staked on Eth 2.0 has now topped the milestone – which is roughly 10.9 percent of the entire Eth supply – with 406,409 unique validators tapping their tokens. These are the most outstanding figures since a consensus vote to start staking was passed in November 2020.
The staking program was oversubscribed by 400% days to the launch, with a 4.25 percent yearly yield, proving that many investors think ETH will complement BTC’s use cases as pure collateral and store of value once the Merge is completed. According to data from staking rewards, stakers are presently earning 4.25 percent in annual yields.
Growing Ethereum staking
“Since the introduction of Ethereum 2.0, interest in staking Ether has exploded. Stakers have already received over $1 billion in bonuses. The network is valued at approximately $13 billion because of all the ETH that has been locked using staking. This demonstrates a strong level of confidence in the long-term viability of Ethereum among its users,” said, BanklessTimes CEO Jonathan Merry.
Ethereum 2.0 is the next iteration of Ethereum, and it entails moving to a proof of stake consensus dubbed “the merge.” The merge is a process of transitioning from the current proof-of-work consensus algorithm to a proof-of-stake consensus algorithm. This will result in a more energy-efficient Ethereum network that is better equipped to handle large-scale applications.
Who is staking on Ethereum?
Taking a closer look at the deposit contract, the entities involved are varied. One of Kraken’s Ethereum wallets is, for example, listed. Staked ETH is also held in wallets associated with exchanges such as Binance, Huobi, and OKEx. Staking services like Stakewith.us and Stakecube are also represented in the top 20 list.
With deposits adding a significant value in ETH to the network’s contract address, it’s worth noting that the actual process of staking Ethereum is still quite complicated and entails users depositing 32 ETH to use validator software. This Ether is then locked and inaccessible until the network upgrade is complete. So while there’s a lot of interest in staking Ethereum, the process is still quite complicated and may dissuade some users from participating.