The Ethereum (ETH) network has reached a whole lot of milestone following the highly-anticipated Shanghai upgrade, as staking activity skyrockets to new heights.
Reports by cryptocurrency analytics platform Cryptorank, the Ethereum (ETH) deposit contract balance has had more than $40 billion, with users depositing over 4.4 Million Ethereum (ETH) since April 12 (the date of the Shanghai upgrade launch).
This surge in staking activity marks a pivotal moment for Ethereum (ETH) and its transition to a proof-of-stake (PoS) consensus algorithm.
Staking Frenzy: A Post-Upgrade Milestone
The past few data shared by CryptoRank outlines that the Ethereum (ETH) deposit contract balance on May 23 stood at 22.6 Million Ethereum (ETH), equivalent to $41.1 billion. This substantial boost in deposits can be attributed to the introduction of the latest feature allowing validators to withdraw their staked tokens.
The Ethereum (ETH) network has experienced a surge in interest, with users seizing the chance to engage in staking and earn bonus for supporting the network’s security and consensus mechanism.
Alongside the expansion in deposit contract balance, Ethereum (ETH) has offered attractive staking returns. As of today, the staking annualized price of return for running an Ethereum (ETH) validator stands at 8.66%, supplying a meaningful incentive for users to participate in staking.
This figure remains whole lot of, further driving the interest in staking between Ethereum (ETH) investors seeking to maximize their returns.
Furthermore, reports by recent data from Crypto Token Opens up, since the implementation of unstaking on the Ethereum (ETH) network, investors have deposited 4.68 Million Ethereum (ETH) into Ethereum (ETH) 2.0 contracts.
Simultaneously, approximately 2.83 Million Ethereum (ETH) has been withdrawn, indicating ongoing investor engagement and confidence in the staking process.
The Future Of Ethereum (ETH) Staking
With the Ethereum (ETH) network surpassing the $40 Billion mark in deposit contract balance, the expansion in staking activity signifies a strong commitment from the community toward the PoS consensus mechanism. This development likewise outlines Ethereum’s transition to Ethereum (ETH) 2.0, where staking will play a critical role in securing the network and achieving scalability.
As Ethereum (ETH) persists to evolve, the surge in staking participation not only contributes to the network’s security but likewise offers a chance for Ethereum (ETH) holders to earn passive income through staking bonus. By actively taking part in staking, users can contribute to the expansion and decentralization of Ethereum (ETH) while reaping the advantages of staking returns.
In the meantime, as Ethereum (ETH) staking persists to surge, Ethereum (ETH) founder Vitalik Buterin has warned of potentially overloading the network consensus. In a recently published blog post, Buterin noted “Don’t overload Ethereum’s consensus.”
The Ethereum (ETH) founder further also mentioned that using Ethereum’s network consensus for other things could attract “high systemic dangers to the ecological system and should be discouraged and resisted.” Nonetheless, following the warning, Ethereum (ETH) staking hasn’t seen any decline so far but only an uptick.
In the previous 24 hours, Ethereum (ETH) has seen a plunge, down by 3.6%. The second- largest cryptocurrency investment by market cap has decreased from a high of trading slightly over $2,000 in recent weeks to trade below $1,800, at the time of writing.
Featured image from Shutterstock, Chart from TradingView