New Record: ETH2 Staking Surpasses 47.36 Million ETH

Ethereum 2.0 staking (ETH2 Staking) has experienced significant growth, reaching a major milestone. The deposit contract for staking Ethereum on the Beacon Chain hit an all-time high of 47.36 million ETH this week.

Data on ETH2 Staking

According to data shared by crypto analytics platform Santiment, this is a significant increase from two years ago when the contract held only 10.9% of the supply. This figure has effectively more than tripled to 33.9% of the total ETH supply.

"The ETH2 Beacon Deposit Contract, used for staking deposits for Ethereum 2.0, now holds 47.36 million ETH, an all-time high. This represents 33.9% of the entire supply and is more than three times the 10.9% it held two years ago," Santiment wrote in an X post.

Source: SantimentSantiment

also noted that ETH holdings have shifted across different types of wallets. Wallets holding over 10 million ETH, which is the Beacon Deposit Contract, have increased to 23% of the total ETH supply over the past two years. Conversely, the amount of ETH in other large wallets, holding more than 10,000 ETH (excluding the Beacon Deposit Contract), has decreased by 5.3%. Additionally, the amount of ETH in wallets holding 10,000 ETH or less also dropped by 17.7% during the same period. This shift indicates that more people are interested in participating in Ethereum 2.0 staking.

ETH Staking Yields Decrease

Despite the growing interest in staking, data shows that both the staking yield and the inflation rate have unexpectedly decreased.

The staking yield represents the annual return percentage for staking ETH, which is the reward earned for contributing to network security. Meanwhile, the inflation rate measures the growth rate of the total ETH supply, with new ETH minted as staking rewards contributing to the inflation trend.

A lower staking yield means that stakers will receive less new ETH per token staked in the short term. However, a reduced inflation rate means the total ETH supply is growing more slowly. This could benefit ETH prices in the long term.

conclusion

the significant milestone of ETH2 staking reaching 47.36 million ETH highlights the growing interest and participation in Ethereum 2.0. With the staking contract now holding 33.9% of the total ETH supply, it is evident that more investors are confident in staking as a means to contribute to the network's security and earn rewards. This shift in ETH holdings across various wallet types further underscores the increasing adoption and commitment to Ethereum 2.0 staking.

However, the unexpected decrease in both staking yields and the inflation rate presents a mixed outlook. While stakers might receive fewer rewards in the short term due to lower yields, the slower growth in ETH supply could positively impact ETH prices in the long run. This dynamic suggests a balancing act between immediate rewards and long-term value appreciation, reflecting the evolving nature of the Ethereum ecosystem as it continues to mature and develop.

Read too : Analysts Predict Ethereum Will Outperform Bitcoin: Here’s Why!

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