The world’s largest blockchain network Ethereum’s new upgrade known as Ethereum 2.0 is showing rapid growth as a staking network since the day of its launch. It already has secured the fourth spot in the world’s staking network in terms of total value locked. A massive amount of ETH has been deposited by validators within the duration of just a few months of the upgrade’s launch.
Fourth-Biggest Staking Network Within Six Weeks
Ethereum Foundation’s Ethereum 2.0 has registered a huge achievement by becoming the fourth-largest proof-of-stake (POS) network in terms of total value locked (TVL) and leaving behind the other famous staking network within the duration of no time. The Ethereum 2.0 upgrade only took six months to reach this milestone. Six months before, the deposit contract address of the upgrade was deployed at the beginning of the month of November. Since that time, validators have been depositing ether (ETH) into this smart contract address.
According to the data shared by the famous cryptocurrency data aggregator Staking Rewards, more than 1.5 million ETHs have already been deposited to the deposit contract address of ETH 2.0. This staggering amount represents approximately 1.35 percent of the total supply of the world’s second-ranked digital currency Ethereum and is worth more than $1 billion in USD. As per estimates, users will be given 13% staking rewards on Ethereum. This means that at the price value of Ether at around $640, users will be able to get $2,725 per year for a stake of 32 ETH.
This handsome percentage of staking rewards is the main thing that is urging the holders of ETH to deposit more and more coins into the smart contract address. What’s more, only the deposit service is enabled and the service of withdrawals has not been enabled so far and despite that, the network has registered this achievement.
Can ETH 2.0 Overtake Polkadot To Become The Largest Staking Network?
Currently, Ethereum 2.0 is holding the fourth spot in the list of the world’s top staking networks and the largest staking network is the Polkadot protocol which has 67.51% of its supply or in other words $3.4 billion worth of DOT tokens reserved for staking. Cardano, on the other hand, is in the second spot.
With the current pace at which ETH is being deposited into the smart contract, ETH 2.0 might be able to overtake Polkadot to become the world’s largest staking network in terms of total value locked. At the moment, Ethereum 2.0 is eyeing crossing the Tezos blockchain network which is on the third spot in this case.