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A total of 852,288 ETH were deposited into the Ethereum 2.0 deposit agreement to trigger the activation of the most ambitious upgrade of the second largest cryptocurrency by market capitalization. The upgrade should improve the business model, resource utilization and governance.
According to data from the Ethereum blockchain, the total amount of ether deposited in the smart contract is now just over $ 488 million, at a rate of $ 573 per token ether. Over $ 400,000 of ERC-20 tokens were also deposited in the address.
The Ethereum 2.0 Deposit Agreement was released in early November and is now quite above the 524,288 ETH threshold required to ensure Ethereum 2.0 launch on December 1st. It is worth noting that the Ethereum 2.0 network itself has not yet launched.
Instead, a proof-of-stake parallel blockchain called a “beacon chain” is about to be launched and will work alongside the existing Ethereum network. Its initial development will have no impact on Ethereum or its smart contracts and applications and will instead contribute to the launch of Ethereum 2.0. Activating the beacon chain is the first of the four stages of migrating to the upgraded network.
The main stakeholders of the Ethereum 2.0 chain will be the validators, which are essentially the equivalent of the miners on ETH’s current proof-of-stake network. Validators, just like miners, will earn rewards for processing transactions and finding new blocks.
To become an Ethereum 2.0 validator, a user must wager at least 32 ETH in the network deposit agreements. At launch, validators are expected to earn an annualized reward of 20% on their staked funds, which could attract investment.
For analysts, however, the growing amount deposited shows user confidence in the launch of Ethereum 2.0. For Weiss Crypto Ratings, the growing number of deposits shows that “everyone wants to get on board”.
Cryptocurrency exchanges and mining pools are expected to help users stake their ether, even if they are below the 32 ETH threshold. Until these services are launched, users are still learning the rewards on their funds through decentralized finance (DeFi) or savings programs.
Both DeFi programs and savings programs are accessible from most major cryptocurrency exchanges. OKEx, for example, has integrated the best DeFi protocols such as Compound and Curve into its platform. In addition to these integrations, the company also has an Earn program that allows users to earn interest on their cryptocurrencies.
Depending on which cryptocurrencies users want to earn interest, they can earn on flexible deposits or by blocking their funds for a period of time which will give the user a higher rate of return. The biggest advantage they have is that they are all located within the OKEx platform, so you don’t need to pay any transaction fees or smart contract. These often cut investors’ profits.
Featured image via Pixabay.
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