As Ethereum’s transition to proof-of-stake (PoS) gets closer and the network’s hashrate taps another all-time high, the Ethereum 2.0 contract is close to nearing 13 million ether worth $22.6 billion using today’s ether exchange rates. Moreover, according to a decentralized finance (defi) educator, the $22.6 billion worth of ethereum that continues to grow won’t be unlocked until another upgrade is enforced following The Merge.
Ethereum 2.0 Contract Nears 13 Million Ether Locked — Defi Educator Says The Merge Won’t Be a Negative Price Catalyst
On June 4, 2022, etherscan.io’s webpage that hosts the Ethereum 2.0 contract, indicates that there’s 12,785,941 ether locked into the contract. Because 32 ETH is required to be a validator, the Ethereum 2.0 contract has funds. Every single day, a decent quantity of validators lock funds in the contract and the current value locked in the contract is worth $22.6 billion using today’s ether exchange rates. The contract has seen more than two dozen 32-ether deposits in the past 24 hours ($56,684).
The $22.6 trillion in ETH locked up and is not liquid. It may be locked for some time. The 32 ETH will be deposited once, but the funds won’t become liquid until the PoS transition is coordinated. Recent developments include the introduction of decentralized finance (defi), an educator in financial services. Korpi published a threadabout the assumption of 12.7 million ether being immediately delocked and dumped following The Merge
“I’ve noticed some people consider The Merge as a negative price catalyst due to a supposed huge [ethereum] unlock — This is wrong,” Korpi explained on Twitter. “Staked [ethereum] won’t be unlocked at The Merge. The Merge won’t enable withdrawals. It is expected that another Ethereum upgrade will be made 6-12 months following The Merge. Also, the stakes are equal. [ethereum] and staking rewards will not enter the circulation for a long time,” Korpi added. Continued Korpi, the defi educator
Unlocked [ethereum]Slowly. All stakes will be withdrawn even if withdrawals can be made [ethereum] won’t be immediately available. It will take several months to get out of the queue in the worse-case scenario. [The]The release of the book will be delayed.
Korpi Opines That ‘Ethereum Maxis’ Staking Coins Won’t Sell So Easily
Just recently, on June 4, at block height 14,902,285, Ethereum’s hashrate tapped an all-time high at 132 petahash per second (PH/s). ETH transaction charges fell to $3 below its average cost at the end May. This was a 10-month-low for the currency. Preston Van Loon was an Ethereum software developer at the Permissionless conference. saidThe Merge may take place as early as August. Vitalik Buterin (ETHC co-founder) confirmed that The Merge might be in place by August. But he also denied any delays.
Amid the recent network records, Ethereum’s Beacon chain experienced a seven-block reorganization, and these types of issues may invoke a PoS transition delay. Ethereum’s Beacon chain is the chain that runs parallel alongside the proof-of-work (PoW) Ethereum network. Tim Beiko, an Ethereum developer, recently stated that The Merge would likely be live in the third quarter 2022. Beiko further stressed that he “strongly suggests” ethereum (ETH) miners do not invest in more mining rigs going forward.
Korpi, a defi educator, continued his twitter thread explaining that Ethereum 2.0 withdrawals will take a while. “To withdraw [ethereum]A validator must leave the active validator sets, but there are limits to how many validators can be exited per epoch. Presently, there are 395k validators (+ pending). It will take 424 Days for them all to leave if there are no new validators (highly unlikely). You are stuck [ethereum] is often a never-sell stack.” Korpi added:
One would not voluntarily lock their doors. [ethereum]It has been many months since we knew when withdrawals might be possible. [Ethereum] maxis, no doubt. The majority [ethereum]Staker are long-term investors. Stakers are long-term investors and do not want to sell, particularly at current prices.
How do you feel about Ethereum 2.0 closing at 13 million Ethereum? What do you think about Korpi’s statements and the slow unwinding process he explained? Please comment below on your views.
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