More than 5% of Ethereum's supply is now locked up in ETH 2.0.

More than 6.6 million ETH have been invested in Ethereum 2.0. This represents more than 5% of the cryptocurrency's entire supply. The ETH 2.0 network currently has 200k validators, accounting for around 6.6 million in Ethereum staked, reaching a new milestone of 5% of the total supply. The annual percentage return (APR) is currently about 6.1 percent.

Here's a graph of how the total amount of ETH staked has varied over the last year:

The Ethereum staking supply is rapidly increasing, as shown in the graph above, and it has now surpassed 6 million ETH. Now, look at the graphic below, which displays the ETH 2.0 staking rate for the same time period.

The ETH 2.0 trapped in staking contracts now accounts for 5.5 percent of the total supply of the cryptocurrency, according to the graph. As previously stated, the current APR is roughly 6.1 percent. As the stake supply grows, this value will inevitably decrease. The APR will drop to around 4.9 percent after 10 million ETH is locked in the deposit contract.

The Rise Of Proof Of Stake Instead of using the classic proof of work (PoW) technique, ETH 2.0 uses proof of stake (PoS) as its consensus mechanism.

PoW is used to reach consensus in cryptocurrencies such as Bitcoin and Ethereum (Core). Miners are validating nodes that require a lot of computational power to hash blocks.

The PoS technique, on the other hand, takes very minimal computational resources. Stakers, or nodes, simply need to stake a portion of their ETH.

PoS has emerged as a more efficient and cleaner approach, as mining farms with high-end GPUs waste a lot of electricity.

Crypto miners have exacerbated the GPU shortage, which is largely due to global semiconductor scarcity. Jensen Huang, the CEO of Nvidia, addressed the issue of point-of-sale (PoS) and the shortfall that arose during this year's E3 season.

Price of ETH

At the time of writing, the price of ETH is hovering at $2.3k, up 32% in the last week. The value of the cryptocurrency has increased by 25% in the last month.

The following graph depicts the price of Ethereum over the last year:

Following a fall earlier this month, Ethereum has begun to rise. It's still unclear whether the cryptocurrency can maintain its momentum and embark on a bull run. The price of Bitcoin has an impact on other cryptos such as ETH. While BTC appears to be on the upswing right now, presumably due to reports that Amazon will accept crypto payments, it's unclear how long that trend will last now that Amazon has verified the opposite.


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