Yesterday, Ethereum core developers announced the successful deployment of the long-awaited deposit contract for Ethereum 2.0 (Eth2). The whole community got thrilled as the development opened staking opportunities for Ether (ETH) holders. The deployment of the contract is a milestone, as it’s essential to the Ethereum 2.0 launch. Also known as Serenity, Eth2 is a major upgrade for the currently running Ethereum network. Ultimately, it marks the transition of the network from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) model.
Meanwhile, cryptocurrency staking has been running smoothly so far, and the Ethereum community shows a keen interest in it. Almost $10 million worth of Ether has been staked in less than 24 hours of the contract launch.
Over 23K ETH Staked for Ethereum 2.0
Currently, data from the Eth2 Launch Pad website shows that a total of 23,493 ETH has been staked. This balance amounts to $9,702,609, following the current price of the cryptocurrency at $413 on Coinmarketcap. Meanwhile, the stated staking threshold is 524,288 ETH, which must be attained with 16,384 validators before the mainnet launches. Judging by the threshold, there’s still a long way to go, given that the Ethereum community still has about 500,795 ETH to stake.
It’s difficult to predict the actual date for the community to surpass the threshold in staking. However, it can be reached sooner, as more people maintain and increase the current momentum. Noteworthily, the Eth2 staking has a good beginning as an observer, The Crypto Cactus, shared on Twitter. About $1 million worth of Ether was staked only 30 minutes away from the contract announcement.
$1,000,000 locked in $ETH 2.0 in 30 minutes…
Just remember for anyone staking, one way bridge.
I have sent across 32 ETH 🙂
— Cactus (@TheCryptoCactus) November 4, 2020
Notional Hindrance to Eth2 Staking
In recent days, the decentralized finance (DeFi) was flagged as a possible threat to the Eth2 staking. Many experts and companies like ConsenSys, issued reports asserting that the DeFi’s high yield farming opportunities could hinder massive participation in the Eth2 staking. ConsenSys blames the fact that these cryptocurrencies are locked away for a long time. Withdrawals for the staked coins are disabled until the launch of Phase 1, if not longer.
However, ETH holders can choose to withdraw their funds from the protocols at any time, as they still possess full control. Besides the differences in reward, ConsenSys also mentions that only a minimum of 32 ETH can be staked in the deposit contract. However, ETH holders can choose to deposit any amount of ETH in yield farming protocols.