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- Ethereum 2.0 finally launched yesterday after months and even years of waiting.
- According to data from Dune Analytics, more than 900,000 ETH, worth over $500 million, was locked into Ethereum 2.0’s Beacon Chain.
- This is 166% more than the threshold of 524,288 coins required to launch the upgrade.
- There were 2,700 unique depositors running over 20,000 validator nodes.
Ethereum 2.0 Launch Stats
Ethereum 2.0 finally launched yesterday. After months of waiting, the first phase of the extensive upgrade to the world’s second-largest blockchain went live.
Ethereum 2.0 “phase zero” allows users to run validator nodes with 32 ETH and basic computational power. This allows users to earn a yield on their coins while also kickstarting the transition from Proof of Work, or “mining,” to Proof of Stake.
Spencer Noon, a top data analyst in the space, recently broke down the numbers of the launch date.
According to data he aggregated from Dune Analytics, more than 900,000 ETH, worth over $500 million, was locked into Ethereum 2.0’s Beacon Chain. This is 166% more than the threshold of 524,288 coins required to launch the upgrade.
There were 2,700 unique depositors running over 20,000 validator nodes.
Historic day for #Eth2 👨🚀 🏴☠️
☑️ 900k $ETH deposited
☑️ $535 million locked
☑️ 166% of threshold
☑️ 2.7k unique depositors
☑️ 22k txs sent to contract— Spencer Noon (@spencernoon) December 1, 2020
Ethereum also temporarily trended on Twitter during the launch, with many sharing their excitement about this long-time-coming upgrade.
How It May Affect ETH
Analysts expect the Ethereum 2.0 upgrade to have a positive effect on the price action of ETH. Messari analysts wrote in the company’s recent report on the upgrade:
“Further reducing the potential issuance of ETH 2.0 until Phase 1.5 are the likely shape of the staking adoption curve, validator performance, and transaction fee burns (EIP 1559). Staking participation will likely start low and increase over time as holders gradually become more comfortable with the Beacon Chain and deposit more ETH into the deposit contract. The result of these three factors is that net issuance from ETH 2.0 could be significantly lower than what’s projected on the above chart.”
As the comment above explains, the roll-out of the Ethereum 2.0 upgrade is expected to reduce the issuance of ETH. Should demand stay stable or increase, this supply decrease should result in a rally in the price of the cryptocurrency.
Further, many think that Ethereum becomes more attractive as an investment as the coin will now have a native yield built in. This native yield will give investors that want a cash-yielding asset to invest in validator technology, which will require them to buy ETH.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Macro Analysis Predicts Bitcoin Has Begun Rally Toward $100k
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