Ethereum, the world’s second-largest crypto network, exceeded 11 Million ETH in contract staking this week. The network recorded the milestone earlier this week, as reported by the financial analytics platform Etherscan.
The Milestone In Figures
Ethereum’s milestone was attributed to its growing interest from investors during the last few months. The increase in staking valued at over $35 billion is related to the new Ethereum 2.0 deposit contract. This increase comes despite the uncertainty revolving around crypto prices.
According to the report, due to the increase in staking, ETH’s market went up and eclipsed the $400 billion mark. The price of ETH tokens also reached $3500 in a surge that showcases the crypto’s surging recovery. This figure is set to grow as more interest and investments pour through within the next few months.
Following the release of the network upgrade in December 2020, the next 15 months led to a dramatic increase in the staking volume. The volume of ETH staked by investors on the network went up by 250% in the last twelve months alone. It rose from 3 million ETH in February 2021 to 7 million ETH in August 2021. The growth continued and by the first week of March, exceeded the 10 million mark. This staking increase translated to ETH token valued at approximately $35.8 billion being sunk into the Ethereum 2.0 deposit contract.
What Led to the Increase?
In recent times, cryptos enthusiasts have faced uncertainty due to several issues. These issues, such as the development of conflict between Russia and Ukraine, led to uncertainty over crypto prices. ETH has not been left untouched, with the Ethereum token showcasing a decline in price and activity. However, following the announcement of the Ethereum merge and the rolling out of upgrades, ETH has showcased a positive growth pattern.
Ethereum’s historic network upgrade that started in December 2020 is the major contributor to increased investment. The crypto-world juggernaut announced that it would move to a Proof of Stake system in the upgrade. The upgrade was to be rolled out to replace the current Proof of Work system. This upgrade would switch the network from using miners and instead replace them with validators using existing technologies.
The network’s release of the Beacon chain drew global interest that made Ethereum the center of much focus during the last 15 months. The success of recent tests, such as the recent one on the Kiln testnet worked to stoke the interest even further. In this test, it was announced that the merge had been conducted successfully prior to public testnet upgrades.
The move led to even more public attention as more and more people and corporations sought to invest in the network. These investments have increased over the last few months as we near the final public upgrade to the network. In line with the trend showcased by the statistics, this number is likely to grow even larger as more investors join the bandwagon.
Source: https://crypto.news/ethereum-contract-staking-11-million-eth-report/