Ethereum 2.0 has Achieved a New Milestone

According to data projections shared by crypto aggregator CryptoQuant, the number of staked tokens on Ethereum has reached 6.6 million. All of these tokens are the new forked branch of Ethereum called ETH or 2.0. This number represents around 5% of the total Ethereum supply into the staking pools. With the high rate of staking, the total verified validators on the network have risen to 200K as well.

A histogram showing the staking records of ETH from 2020 to the current year shows a consistent raise without any breaks in the middle. The current APR or the annual percentage return for Ethereum 2.0 has reached 6.1%. However, it is worth noting that APR is bound to decrease as the taking supply rises. Therefore, the rapidly increasing Ethereum staking supple reaches 10 million tokens, the APR could break down to 4.9%.

Advantages of Proof of Stake Consensus Model

In 2015 Ethereum network was divided into two forks. Ethereum Classic, also known as ETC, continued to use the proof of work consensus model. On the other hand, Ethereum 2.0 was able to switch to proof of stake for validating transactions on the network and clearing blocks. This upgrade made a positive impact on Ethereum 2.0 in many ways.

The miners who require high GPU for hashing out the blocks were replaced by validating nodes. These nodes require little energy. The amount of staking coins required on the network is also very small. Jensen Huang, CEO of Nvidia graphics, claimed that if there were more PoS tokens in the crypto space, the extreme shortage of graphic cards would not have occurred.

Bitcoin is called the flagship cryptocurrency since it contributes a mega share in the aggregate crypto market evaluation. At present, Bitcoin accounts for more than 45% of the total crypto market cap. Therefore, when Bitcoin is down, most of the tokens follow it in their stride as well. However, during the 2021 bull run, when Bitcoin was down in May, Ethereum was still registering new ATHs.

Even though this trend did not last for a long time and Ethereum eventually declined. However, there are not many altcoins that can rally and act neutral from the Bitcoin market impression. Recently, the rumors about Amazon investing in cryptocurrencies helped Bitcoin get out of a slump. Ethereum also reaps the benefits of an uplifted market. In the last seven days, ETH was improved by 32%.