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Ethereum deposit contract exceeds 10 million tokens

Even if the migration to Consensus Layer is slow in coming, it doesn't seem to affect user interest in the update. One indicator that shows investor excitement for mainnet is the Ethereum staking contract. Indeed, last week, the ETH deposit contract hit an all-time high. 

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More than 10 million Ether are now locked in the ETH2 deposit contract according to data provided by Etherscan. At the current cryptocurrency price ($2,539), that’s over $25 billion locked in a staking protocol. Under its record price levels of $4,800, that would be roughly $48 billion.

 

These funds are important since they will be the locomotive of the Ethereum ecosystem which will move towards the Proof of Stake consensus mechanism. Unlike Proof of Work where the miner, to validate transactions and produce new tokens, must demonstrate high computing power to solve complex algorithms.

 

In the Proof of Stake governance mechanism better known as PoS, it is the user who manages to prove that the network really matters to him who will be able to validate transactions. And staking your ecosystem assets is a better way to show you care.

How Is The ETH2 Staking Contract Organized?

 

Ethereum deposit contract
Ethereum 2.0 deposit contract exceeds 10 million tokens

Initially, the deposit contract requires 524,000 tokens to launch. In less than a day, staking subscriptions far exceeded the required minimum. The number of Ether locked in staking protocols had reached over 2 million within 24 hours. Note that to become a validator, the user must deposit 32 ETH. According to data shared by Staking Rewards, there are 67,040 unique depositors for the ETH2.0 staking contract.

The latter would have made an average of 4.81% in terms of annual return on each token deposited. This is well below the average annual staking return of Terra Luna and Solana which stand at 6.07% and 5.72% respectively. Recall that last week, the Terra ecosystem became the second project in terms of TVL (total values ​​locked) behind ETH.

Coming back to yield, among the staking protocols that offer attractive annual returns, we can mention:

  • Lido Finance=> 9.86%
  • Cream Finance => 10.86%
  • StakeWise => 9.86%
  • Stkr => 9.64%
  • Stafi Protocol => 8.76%
  • Stake DAO => 9.86%
  • Rocket Pool => 9.86%
  • Blox Staking => 9.76%

What About The Price Of Ethereum? 

Ethereum price chart

Evolution of the price of Ethereum (ETH). Source: Trading View

 

Unfortunately, the context of war in Ukraine continues to penalize cryptocurrency recovery movements. This means that Ethereum finds itself stuck in a range ($2,300 – $3,100) since the outbreak of hostilities and cannot get out of it. Nonetheless, as long as it doesn’t dip below $2,300, there is hope for an upside rally. As a result, the Federal Reserve meeting will be of paramount importance for the asset’s short-term future.

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