Over 12.7 million Ether (ETH) is deposited in the Beacon Chain contract, pending the full upgrade later this year.
A record of the number of ethers blocked
According etherescan, 12,727,557 ETH are currently stored, worth $25 billion. This shift, known throughout the crypto ecosystem as the “merger,” could take place this summer. Deposits from more than 73,000 addresses were registered on Monday. The current contract holdings make the network the second largest by stake value, after Solana. It seems to be on the rise, as it just surpassed 10 million ETH in March.
That said, its performance compared to other networks is low, since it is 4.3%, against 5.41% for Solana and 5.96% for Terra.
the staking ETH 2.0 was initially implemented in November 2020, following a consensus vote to abandon the system of Proof-of-Work.
the smart contract consists of staker ETH on the Beacon chain, the future “backbone” of the Ethereum network. This chain will eventually merge with Ethereum to serve as a coordination mechanism and allow it to operate on a proof-of-stake principle.
The Proof-of-Stake is a consensus model that allows users to build blocks by staking their cryptocurrency holdings, rather than expending energy. If chosen to create a block, a staker will earn a block grant, allowing users to earn an effective ‘yield’.
A highly anticipated event throughout the web 3.0
However, this consensus mechanism has also led to a key problem closely associated with sending funds through the Ethereum blockchain: network congestion and expensive gas fees.
The merger is arguably the biggest event in crypto history, as Ethereum is the second largest blockchain in the ecosystem and one of the oldest networks to take advantage of decentralized technology.
ETH Lead Developer Preston Van Loon and Co-Founder Vitalik Buterin both hinted that the transition could happen in August unless there is a significant delay. The merge has already passed key tests like Kiln and Ropston, as well as a major shadow fork test in April. The recent fall of all cryptocurrencies has also caused the king of ether to fall below the billion capital mark.
Also, Ethereum network fees, at the time of writing, were the cheapest in over ten months. The average ETH transfer fee slipped to $2.96 per transaction.
The merger is an event eagerly awaited by the Ethereum community, but also by many players in the crypto ecosystem. Tens of thousands of projects are on the Ethereum blockchain, and it remains well ahead of others in the NFT industry. Its change therefore affects all of web 3.0 and it will be hoped that this will go smoothly.
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10% of ethers (ETH) in circulation are now locked in ETH 2.0
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