Since 2020, Ethereum 2.0 was long in development. There have been many upgrades since then to make the network ready for the proof-of-stake move. Most recently of this has been the Kintsugi testnet that allows users of the blockchain to get a glimpse of what is to come when “The Merge” finally happens.
Since the launch of ETH 2.0, it has been a full year. There have been many notable developments since that time. In this article, we’re going to look at the year in review and all that has happened with the network since then.
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More than 7% of ETH Supply Stolen
The increase in stakes on Ethereum has been evident since the introduction of proof of stake. To run a validator, 32ETH is required. Miners no longer have to be competitive and validate blocks as proof of work. Validators are rewarded for making the network safer and verifying transactions.
In less than a full year, the number staked on the network had reached 5%. The launch of the Beacon Chain was completed in December. There are currently over 8.6 millions ETH staked on this network, with a value totaling $33.5 billion. In this year, the number of validators has risen to more than 271,000.
7.33% of ETH supply is staked| Source: Arcane Research
The total amount of ETH that is currently staked on Ethereum is 7.33 percent. This number will grow as the merger nears. APY should increase after the merge. This is due to the unburnt fee revenue, and MEV that will now be paid to stakers rather than miners under the new proofof stake mechanism.
Ethereum Moves Towards the Merge
Although the race to complete merger with Ethereum 2.0 continues, there is some infrastructure in place that will ensure that it happens. Obol Network’s multi-operator validation network Lido is one example. It allows liquid staking tokens to be created on the Ethereum network.
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Rocket Pool is another service for decentralized stakes that was launched on the mainnet. They have helped the network move towards 2.0 and made it simpler for token holders to stake their tokens.
Monday saw the release of Kintsugi’s testnet. It’s the first testnet public of significance released on Ethereum. This testnet will be followed by other testnets, which will demonstrate how the network will function after merging.
Source: ETHUSD at TradingView.com| Source: ETHUSD on TradingView.com
Featured image taken from BitcoinKE chart by TradingView.com
