Ethereum 2.0 staking has witnessed a remarkable surge, with a significant milestone being achieved recently. The deposit contract for staking Ethereum on the Beacon Chain has reached an all-time high of 47.36 million ETH this week, accounting for 33.9% of the entire Ethereum supply. This marks a substantial increase from two years ago when it held only 10.9% of the supply, effectively more than tripling its share. This growth in staking activity is a clear indication of the growing interest and confidence in Ethereum 2.0 among investors and users.
According to data shared by the crypto analytic platform Santiment, there has been a significant redistribution of ETH among different wallet tiers. Wallets holding more than 10 million ETH, which represent the Beacon Deposit Contract, have increased their share by 23% of ETH’s supply in the past two years. On the contrary, holdings for other wallet categories have seen a decline, with 10K+ETH wallets (excluding the Beacon Deposit Contract) dropping by 5.3% and wallets with 10K or less ETH decreasing by 17.7% over the same period. This shift highlights the growing participation in Ethereum 2.0 staking, with larger stakeholders taking a more prominent role in the ecosystem.
Despite the increasing trend towards staking, data reveals that both staking reward rates and inflation rates have experienced unexpected decreases. The reward rate, which represents the annual percentage return for staking ETH, has decreased. This means that stakers will receive less new ETH per staked token in the short term. Additionally, the inflation rate, which measures the pace at which the total ETH supply grows, has also decreased. This slower growth in the overall ETH supply could potentially benefit ETH’s value in the long run, as it indicates a more controlled and sustainable growth trajectory for the cryptocurrency.
The surge of Ethereum 2.0 staking has brought about a new wave of excitement and activity in the crypto market. The achievement of new milestones, coupled with the redistribution of ETH among different wallet tiers, signifies a shifting landscape in the Ethereum ecosystem. While changes in staking reward rates and inflation rates may pose short-term challenges, the long-term prospects for ETH’s value look promising as the network continues to evolve and grow.
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