Wednesday, May 25, 2022
About us | Contact
Blockzeit
  • bitcoinBitcoin(BTC)$29,609.001.75%
  • ethereumEthereum(ETH)$1,965.711.08%
  • binancecoinBNB(BNB)$327.563.01%
  • SolanaSolana(SOL)$48.20-0.36%
  • dogecoinDogecoin(DOGE)$0.0832891.54%
  • Home
    • Business
    • Politics
  • Markets
  • Investing
  • Technology
  • Trends
  • NFTs
    • Metaverse
  • Education
    • Glossary
    • Buy Crypto
      • Buy Cardano
  • Events
    • Metaverse Events
No Result
View All Result
  • EnglishEnglish
    • EnglishEnglish
    • DeutschDeutsch
    • PortuguêsPortuguês
  • Home
    • Business
    • Politics
  • Markets
  • Investing
  • Technology
  • Trends
  • NFTs
    • Metaverse
  • Education
    • Glossary
    • Buy Crypto
      • Buy Cardano
  • Events
    • Metaverse Events
No Result
View All Result
Blockzeit
No Result
View All Result
Home Technology
ethereum 6286123 1280

ethereum 6286123 1280

Staked Ethereum 2.0 Soars Past $21B

Jay Speakman by Jay Speakman
August 17, 2021
in Technology
Reading Time: 3 mins read
0
Share on FacebookShare on TwitterShare on LinkedinShare via WhatsappShare via Email

At a glance

  • Staking is the act of pledging cryptocurrency to the blockchain in order to help secure the network and earn newly minted coins
  • Stakeholders in Ethereum lock up funds until Ethereum 2.0 is further along
  • Ethereum staking now accounts for the majority of all Ethereum holdings

Ethereum Staking Soars

Based on data from leading blockchain analytics firm Nansen, Ethereum 2.0 staking has now reached 6.73 million ETH (approximately $21.2 billion). This surpasses the total amount of wrapped Ethereum on the network.

The rising volume of staked ETH indicates Ethereum users’ confidence in developers’ ability to deliver on the much-anticipated Ethereum 2.0 network update, when Ethereum’s current proof-of-work blockchain “merges” with the proof-of-stake chain.

Unlike most other cryptos, staked Ethereum remains locked up until that goal is reached. The goal has yet to be determined and the merger is expected to occur sometime in early 2022. 

This differs with wrapped Ethereum (currently 6.69 million on the Ethereum network), which are 1:1 tokenized versions of regular Ethereum coins that can be immediately used. 

They are wrapped, or tokenized, in order to be more compatible with decentralized finance (DeFi), non-custodial financial services that enable peer-to-peer lending, borrowing, and trading via a blockchain.

Proof of Work

Proof of Stake vs Proof of Work

Ethereum, like Bitcoin, is currently based on a blockchain mechanism known as proof of work, which relies on gas-guzzling miners (powerful computers) to validate transactions. Miners must solve complex equations in order to be granted the privilege of validating transactions and receiving newly minted coins.

Mining is a lucrative business for wealthy investors and companies with access to high-tech hardware and industrial sites, but it is less accessible to the general public.

Proof of Stake

Proof of stake, a mining alternative, could change that. It is the act of pledging cryptocurrency to a blockchain network and participating in the task of transaction verification. Stakers, like miners, are rewarded with newly-minted coins for putting economic resources on the table to secure the proof-of-stake network.

To become a validator and run an ETH 2.0 node, a minimum of 32 ETH (approximately $102,000 at today’s prices) is usually required. Would-be stakers, however, can pool their holdings to meet that threshold, participate in securing the new network, and earn rewards through staking-as-a-service companies and centralized exchanges.

Is it Worthwhile to Stake Ethereum?

The Ethereum 2.0 project, as well as the staking process, deserve special attention. Staking will make the network more scalable than it is now. Simultaneously, the staking process will enable users to secure their income.

Final thoughts

According to Nansen data, the source of approximately half of the ETH staked is unknown. The largest known staked ETH amount (820,544) is deposited on Kraken, a cryptocurrency exchange. Following that is staking-as-a-service provider Lido Finance, with 762,272 ETH, and global exchange Binance, with 588,608 ETH.

Jay Speakman
Jay Speakman

I write about blockchain, crypto, NFTs and other disruptive technologies and innovations.

Previous Post

U.S. State Department Offering $10 Million Incentive to Dark Web Informants

Next Post

ZED RUN: Digital Horse Racing on the Blockchain

Related Posts

polygon

Polygon: A Crypto Sleeping Giant

by Jay Speakman
January 20, 2022
0

Polygon is a layer 2 scaling solution built on the Ethereum blockchain that aids in the acceleration of transactions performed...

Walmart Store sign

Walmart Bursts into the Metaverse with Cryptocurrency and NFTs Plan

by Tom Nyarunda
January 17, 2022
0

Walmart has filed applications seeking trademarks for digital currency, software to manage cryptocurrency and other digital assets, and online retail...

whatsapp adds support for novi cryptowallet

Meta is Piloting Novi Crypto Project via WhatsApp in the U.S.

by Tom Nyarunda
December 10, 2021
0

WhatsApp is testing cryptocurrency payments on its platform. Some users can now send and receive money through Novi, a cryptocurrency...

Load More

Get updates to your inbox!

Subscribe to our mailing list to receive daily updates!

FOLLoW US:

Blockzeit Logo 10 1

Blockzeit was founded in 2021 in Switzerland with the mission of bridging the gap between the complex blockchain technology and the general public. Blockzeit is a news and education platform that aims to make blockchain more accessible and bring more transparency to the scene.

Popular Categories

Categories
  • Bitcoin News
  • Business
  • Buy Crypto
  • Education
  • Investing
  • Markets
  • Metaverse
  • NFTs
  • Politics
  • Press Release
  • Switzerland
  • Technology
  • Trends

Important Links

  • Privacy Policy
  • Disclaimer
  • About us
  • Contact us
  • Blockchain Jobs
  • Events

Contact & Social

For guest posts, contact us via info@blockzeit.com

 

Contact: info@blockzeit.com
Press: press@blockzeit.com

Facebook Twitter Linkedin Instagram
  • Home
  • Markets
  • Investing
  • Technology
  • Trends
  • NFTs
  • Education
  • Events
© Copyright by Blockzeit.com. All rights reserved.

Disclaimer

No Result
View All Result
  • Home
    • Business
    • Politics
  • Markets
  • Investing
  • Technology
  • Trends
  • NFTs
    • Metaverse
  • Education
    • Glossary
    • Buy Crypto
      • Buy Cardano
  • Events
    • Metaverse Events
  • DeutschDeutsch
  • PortuguêsPortuguês

© 2021 Blockzeit by Blockzeit.