The staking contract for the Ethereum 2.0 blockchain is now the single-largest holder of Ether.
According to blockchain analytics provider Nansen, the Eth2 staking contract has surpassed Wrapped Ethereum (wETH) to become the single largest holder of ETH. Unlike Ether, Wrapped Ether adheres to the ERC-20 standard, making it the favored representation of ETH among DeFi protocols that use ERC-20 tokens.
The findings were posted to Twitter by Alex Svanevik, CEO of blockchain analytics firm, Nansen, on Aug. 17. The data shows that the Beacon Chain’s deposit contract holds 6.73 million ETH — worth roughly $21.5 billion at current prices.
By contrast, Nansen’s data suggests the Wrapped Ethereum contract holds 6.7 million ETH ($21.4 billion), followed by Binance with 2.29 million ETH ($7.3 billion).
The quantity of Ether locked staked on Eth2 currently represents 5.7% of Ethereum’s circulating supply, according to CoinMarketCap. There are now 210,000 validators for the Eth2 network according to Beaconcha.in.
Currently, Ether staked on Eth2 is locked up and cannot be withdrawn from the contract until Ethereum’s forthcoming chain-merge that will meld the Ethereum and Eth2 networks. The chain merge is currently expected to take place during the first half of 2022.
According to Staking Rewards, Eth2 is currently the third-largest Proof-of-Stake network by staked capitalization, ranking behind Cardano’s $49 billion and Solana’s $27.5 billion.
The news comes shortly after a major milestone for Ethereum’s Eth2 roadmap, with the network successfully deploying its London upgrades on August 5.
The hard fork contained the highly anticipated Ethereum Improvement Proposal 1559, which introduced a base transaction fee that is burned from supply into Ethereum’s fee market.
According to Ultrasound. Money, 54,916 ETH worth $175 million have been destroyed through transaction fees in the dozen days since London went live. At a current burn rate of 3.28 ETH, more than 140,000 ETH could be burned each month should network activity remain consistent.
At the time of writing, ETH prices had retreated 3.3% over the past 24 hours to trade at $3,180.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high
Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines.
TON set to launch synthetic Bitcoin to boost its DeFi solutions
TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.
Maker Price Forecast: MKR could stage 40% rally
MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.
USDT market cap crosses $120 billion as stablecoins continue their uptrend
The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.