Ethereum 2.0 Deposits Slow Down This Week; Only 10% of ETH Staking Goal Achieved So Far
Since the Ether staking activated, ETH has been deposited at a steady pace. Currently, 56,113 Ether, worth nearly $26.5 million, has made it to the deposit contract.
This is just over 10% of the required 524,288 ETH (16,384 validators) to launch the mainnet. The Phase 0 staking goal is much far away that could see the expected launch date of December 1st being pushed back.
As one ETH enthusiast shared their concern, “An average of 2,100 ETH per day has been deposited over the last three days. We need ~32,000 ETH per day from now till 11/24 to meet the 12/1 launch date. At the current rate, we will NOT launch till June 2021.”
The number of ETH 2.0 deposits have actually slowed down considerably this week.
However, ETH holders will likely be staking more and more ETH towards the deadline. This is because the size of rewards depends on the total amount of ETH staked in total — the more the people staked, the lower the yield.
Besides the late mover having more information, staking ETH is a one-way street, and if something goes wrong with ETH 2.0, these ETH are gone forever. Moreover, staking via exchanges offers instant liquidity on BETH, and the exchange will be the one doing the work of running a virtual validator.
“This makes sense though – not only is there a yield opportunity cost from now until Dec 1 on ETH1, but if you deposit later, you'll get a better idea of ETH2 staking yield,” said analyst Cetris Paribus.
Amidst this, Ethereum Foundation is funding several grants for ETH 2.0 staking.
Announcing the Eth2 Staking Community Grants Round!
The Ethereum Foundation is funding a wave of grants for the creation of tools, documentation, and resources to make for a delightful staking and validator experience 🚀
Proposals due December 22nd!https://t.co/psYdP2Q6NF
— dannyryan (@dannyryan) November 10, 2020
According to CryptoQuant CEO Ki Young Ju’s Twitter poll, 45% of the 815 votes are “just not interested” in locking their ETH. While 15.5% says their ETH are locked on other projects, a good 26% says there is a lack of staking rewards with a deadline effect as per 13.5% of the votes.
Additionally, this past week, ETH price saw substantial gains, currently trading near $470, with ~80% of $ETH addresses experiencing profit. However, both the transaction and social volume of ETH have begun to decline, with positive funding rates making an appearance mean the price may take a breather here.
But the fact that crypto exchanges’ ETH balance is declining and active addresses are increasing only slightly; these deposits can gain momentum.