11/07/2022
Highlight
- Glassnode reports that 10.9% of Ethereum supply, or approximately 13 million ETH, has been deposited into Ethereum 2.0
- Lido accounts for 31.8% of the deposited ETH through staking (4.137 million ETH)
- Coinbase, Kraken and Binance account for a combined 27% of staked ETH (3.505 million ETH)
The upgrade to Ethereum 2.0 represents a significant transition for the digital asset industry. The change will move Ethereum from its existing Proof-of-Work model to Proof-of-Stake.
This process will take place on a blockchain called the Beacon Chain. It is expected to begin around December 2022, when investors will be able to participate as system validators. To do so, they must deposit 32 ETH into Ethereum 2.0 under a contract for which the withdrawal date is not known. The process has been underway since November 2020. Investors can also stake through staking pools such as Lido and Rocket Pool, or through certain Exchange providers.
Total ETH deposits stand at 12.98 million ETH, representing 10.9% of the supply. Of this amount, 8.02 million ETH, or 62%, was deposited before November 2021, while the remaining 38% was deposited afterward.
Ethereum transaction fees have also fallen to their lowest level in two years, averaging $0.88 per transaction. This is partly because the price of ETH has fallen by as much as 75% from its all-time high. The last time fees reached a comparable low was in July 2020, when they fell below $0.90.
Ethereum transaction fees have also fallen to their lowest level in two years, averaging $0.88 per transaction. This is partly because the price of ETH has fallen by as much as 75% from its all-time high. The last time fees reached a comparable low was in July 2020, when they fell below $0.90.
Glassnode's study indicates that investors using Staking Derivatives, such as those issued through Lido, or trading ETH 2.0 tokens on Exchanges, may be better able to manage price risk. The study also suggests that demand for Staking Derivatives may provide improved liquidity, while allowing these assets to be used as collateral in DeFi applications.
Source:
https://insights.glassnode.com/market-pulse-eth-stakers-underwater/
https://u.today/109-of-ethereum-supply-now-deposited-in-eth-20