ETH 2.0 Effect: Ethereum Staked Value & Miner Revenue Continue to Uptrend

Ethereum 2.0 deposit contract continues to amass more and more ETH.

The trend particularly gained momentum after ETH 2.0 finally went live on Dec. 1st. More than 81,500 ETH were deposited to the contract on Tuesday, bringing the total staked value to about 1.35 million ETH.

This represents 253.75% of phase 0, “the Beacon Chain” goal, as per Dune Analytics.

While more than 1% of ETH supply is locked in ETH 2.0 contract, about 7 million ETH are locked in DeFi, and another 3 million are with Grayscale’s Ethereum Trust.

With the Beacon Chain's successful launch, the enthusiasm around Ethereum is increasing not only among the retail but also institutions.

In the world of mining, the “new generation of Bitmain ETH machine E9 is in production,” with “China's ETH mining enthusiasm is higher than BTC this year. At least 10 companies are preparing to make new ETH mining machines,” noted Chinese publication Wu Blockchain.

For now, a full transition to proof-of-stake (PoS) is still far off, and at least for a year, ETH1 will continue to run normally with no changes to the mining.

“There are still plenty of mining rewards left to be earned, and there will be for the foreseeable future,” stated one of the biggest mining pools, F2Pool.

According to an F2Pool’s report, mining revenue is to be unaffected by the development of ETH 2.0 and “will be a profitable option for at least another year or two.”

Ethereum creator Vitalik Buterin himself had stated that the issuance rate of the cryptocurrency would remain stable at 4.7 million tokens per year for the foreseeable future.

However, there is Ethereum Improvement Proposal (EIP) 2878, which seeks to reduce inflation by reducing the block reward from 2 to 0.5 ETH, and EIP 1559 that suggests modifying the dynamics of the Ethereum fee market to mitigate certain issues with the user experience that arise during times of high congestion, that is to be considered but are currently under discussion and debate.

As of writing, Ethereum mining revenue is $0.036 per MH/s, trending up since last month, as per Bitinfocharts.

In November, Ether miners raked in over $262 million in revenue, up 22.4% from the previous month but down from September's $321 million, which resulted from DeFi mania.

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