Ever since Ethereum announced its transition to the new Proof-of-Stake consensus layer, aka ETH 2.0, the amount of stakes in the blockchain protocol has increased rapidly. According to reports, the number of stakes accounts for 10% of the total Ether supply.
Crypto data analyst Delphi Digital states that validators and nodes have staked more than 10 million ether in the new ETH contract, accounting for almost 9% of the total supply. With ETH 2.0 expected to arrive later this year, staking yields are also expected to increase as gas fees gained by miners will now be transferred to the validators.
The Prospects of ETH 2.0
Investors and validators are optimistic about the impressive growth of the upcoming consensus layer as they feel it will function better than the previous energy-reliant PoW layer. The merge will increase yields for nodes and minimize transaction fees, which excites users.
When the merger is complete, the validators will finally assume the role of miners. It means they will be responsible for validating blocks based on their staked amount rather than the mining equipment. Their stakes serve as collateral against malicious acts, which keeps the ecosystem even more secure than a PoW-run protocol.
Ethereum’s PoS consensus layer was launched in late 2020. The blockchain intends to transition from the energy-consuming PoW to the more energy-efficient and affordable PoS to protect the environment. Once fully integrated, the network will join Solana as prominent chains running on the PoS algorithm.
The merge is largely acclaimed as a game-changer that will lead to the adoption of crypto and the blockchain. Although ETH remains a top dog for DApps deployment, users have identified Solana and Cardano as worthy alternatives, given their low-cost transaction, scalability, and power efficiency.
Animation and game company, Paradox Studios, predicted Solana would be the new face of blockchain gaming because their build language was better than Ethereum’s. Many have also forecasted Solana to overtake ETH in DeFi applications due to their renderings. The ETH 2.0 might just be what Ethereum needs to restore confidence and return to the top of the decentralized ecosystem.
What ETH 2.0 Has Achieved So Far
The network recently hit a significant milestone with the number of validators. According to reports, the Ethereum network hit an astounding 300,000 validators.
Before that, the network launched the London Hardfork in 2021, aiming to increase the quantity of burnt ETH per transaction. With this, the crypto will be deflationary, and there will be an increase in the supply deficit. This phenomenon will ultimately increase the value of ETH.