According to crypto analyst AliRelying on data from Glassnode, approximately 150,000 ETH, valued at around $195 million, was transferred to an ETH 2.0 deposit contract last week. Ethereum’s total holding has reached a new all-time high of 13.9 million ETH.
#ethereum , roughly 150,000 $ETHworth approximately $195 million, has been transferred to #ETH2 Deposit contracts hit a new all-time high of 13.9 million in the past week #ETH staking out pic.twitter.com/p9oDsgod6s
— Ali (@ali_charts) 23 September 2022
As reported by U.Today, the number of addresses for ETH 2.0 deposit contracts reached 13,343,768 prior to the merge update. The stake rate has also increased, with 153,000 new ETH being staked in the month prior to the merger.
On September 15, 2022, the merger took place, marking Ethereum’s historic switch from proof of work to proof of stake and marking the official abandonment of the resource-intensive, miner-based mechanism it had previously used for its decentralized ledger. to process the update. With the Proof-of-Stake consensus now fully implemented on Ethereum, Proof of Work has been formally deprecated, resulting in a reduction in energy consumption of approximately 99.95%.
ETH staking after merge
ETH owners can stake their coins through the Beacon chain’s deposit contract. However, staking rewards and staking ETH are still locked and cannot be withdrawn. ETH staked immediately after the merge, current staking rewards and newly issued ETH will all be locked on the Beacon chain without the ability to withdraw.
Instead, withdrawals are planned for the Shanghai Update, which will be the next significant upgrade after the merge. According to it, newly issued ETH will be locked and illiquid for at least 6 to 12 months after the merge, but it will still be stored on the Beacon chain.
Once Shanghai Update enables withdrawals, all validators will be incentivized to remove their staking balances above 32 ETH as these funds do not increase yield and are otherwise locked out. They may be encouraged to leave their validators to recover their full balance, or they may bet even higher by using their rewards based on the APR (total amount of ETH). count) depends.