10% Of Ethereum’s Circulating Supply Now Staked In ETH 2.0

Staking deposits for Ethereum 2.0 have topped 12.7 million ETH in advance of the network’s adoption of a proof-of-stake consensus layer for transactions. The transfer is known as “The Merge” throughout the crypto community and is expected to take place this summer, according to EWN.

According to current coin values and press time, the entire value of staked ETH is worth an estimated 25.9 billion USD. Deposits have also been made by 73,808 different addresses, according to Dune Analytics statistics.

On Monday, ETH recaptured a $230 billion market cap after surging beyond $1,800.

After an unanimous vote to abandon the proof-of-work mechanism, ETH 2.0 staking was launched in November 2020. Miners are responsible for validating transactions and enhancing network security in a PoW network.

However, this consensus technique caused a major issue closely related with sending funds via the Ethereum blockchain – network congestion and high gas fees. Gas fees are the fees paid by senders to complete translation on the Ethereum blockchain.

According to core devs and crypto supporters alike, switching to proof-of-stake should eliminate this critical barrier. In a PoS blockchain, stakers replace miners. These users use nodes to validate transactions.

The Merge is arguably the biggest event in crypto history, as Ethereum is the ecosystem’s second-largest blockchain and one of the first networks to use decentralized technology.

Both ETH core engineer Preston Van Loon and Co-Founder Vitalik Buterin have hinted that, barring any severe delays, the switch might take place in August. The Merge has previously passed critical testnets such as Kiln and Ropston, as well as a big shadow fork test in April.

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