On Friday, the balance in the deposit contract for staking Ethereum on Beacon chain was 12 million ETH. The Eth2 contract holds Ether worth approximately $34.5 billion.
The deposit contract was launched November 2020. It currently holds approximately 10% of the total circulating supply.
Beacon chain staking contract. Source: Etherscan
The Beacon Chain represents the first major step towards Ethereum’s transition to a consensus model that is proof-of work (PoW), and proof-of stake (PoS). To become a validator of Eth2, a trader must invest at least 32 ETH. The largest Beacon Chain contract at $34.5 billion, which is worth $34.5 billion, highlights the huge demand for Eth2, and the trust that people have in it, despite delays.
ETH developers began the PoS network community testing in December. However, the tentative merger date of 2022 was pushed back again without offering any date.
Related: Ethereum price “bear flag” could sink ETH down to $2K following a 20% drop in three weeks
The biggest Ethereum upgrade since its inception was a difficult one. There have been many delays and challenges along the way. Despite all this, the deposit contract has seen a significant increase with more than 2 million ETH deposited in the past two months.
The Ethereum move to PoS has caused mixed reactions in the crypto market. While the energy-conscious group has praised the move, claiming that it would reduce the network’s consumption of 90%, Bitcoin proponents like Jack Dorsey believe PoS is more centralized and less secure than PoW.
More centralization, less security
— Jack (@jack), May 20, 2021
The transition to Eth2 would be completed by the merger of the Beacon network into the Ethereum mainnet. The merger will bring the Ethereum network up to par with central payment processors. It will also increase its payment processing speed significantly through sharding (parallel processing).
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