Deposit Contract reaches milestone of 1,000,000 ETH

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Ethereum 2.0: Deposit Contract reaches milestone of 1,000,000 ETH

Ethereum has now officially launched Ethereum 2.0 with the Beacon Chain. After an initial lack of interest, the launch of Ethereum 2.0 Phase 1 could nevertheless begin on time on 01.12.2020. The initial concerns have thus turned out to be unjustified and it is now becoming clear that interest is even growing steadily.

The required threshold for the timely activation of Ethereum 2.0 was already reached on 24.11.2020. After investors had Crypto Bank deposited the necessary minimum amount of 524,288 ETH on 24 November, new milestones have now been reached.

Within a few days, the deposited amount of ETH has almost doubled compared to the minimum amount and now exceeds 1,000,000 ETH for the first time.

There is now over 1 million ETH ($600mil+) in the eth2 deposit contract ­čÜÇ

– Anthony Sassano | sassal.eth ­čĆ┤ (@sassal0x) December 4, 2020

The consequences for ETH

The consequences for ETH are easy to describe. In principle, the following rule applies:

The more coins are staked, the more ETHs are available that are not available for trading until the start of the next phase of ETH 2.0.

Depending on when the next phase of ETH 2.0 actually comes into effect, it could take months (up to years) until these ETHs that have now been deposited are accessible again.

Assuming that the number of deposited ETHs will continue to increase, this could also have an impact on the actual offer. At present, however, the proportion of deposited ETHs is still below the 1% mark in relation to the total Ethereum offering.

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The big change to Proof of Stake

What is certain is that Ethereum is taking a giant step. Moving from an existing proof-of-work consensus mechanism to a proof-of-stake mechanism is like open heart surgery.

The whole system is changing and all the advantages and disadvantages of PoS systems will be brought to bear.

It is likely that some investors will see a high incentive in the new proof-of-stake mechanism to deposit their ETH. With an expected return, which can even be in the double-digit range, this aspect of PoS represents an interesting opportunity to invest their own ETHs, at least from an investor’s point of view.