Ethereum Investors Accumulating; 42.5% of ETH Holders Plan to Stake 50% to 100% of their Coins
The second-largest cryptocurrency by market cap, Ether is currently down below $200 at $188 but still recording 43% gains YTD.
The ETH price might be dull right now but with the increasing popularity of Ethereum applications such as DeFi and stablecoins, the number of contract transactions continues to increase as a percentage of the total number of Ether transactions, as per Coin Metrics.
66% ETH holders plan to stake
While most altcoins are busy with selling currently, ETH holders are busy accumulating, as per Santiment’s top 100 holders percentage cumulative change of total supply.
This makes sense given that 66%, a third of the survey respondents conducted by ConsenSys said they will stake their coins once the first phase of much-anticipated ETH 2.0 is rolled out.
Out of the 287 respondents, 33.1% said they plan to use a third-party provider to stake their Ether. These participants also “exhibit the relatively highest ratio of storage of ETH on an exchange.” They also expect an average annual return of 7.6%.
As for those planning to run their own validator nodes, they are expecting to earn lower annualized rewards of 5.8%. This segment was found to “hold the relatively largest amount of ETH.”
42.5% of these who are planning to run their own nodes intend to stake 50% to 100% of their ETH holdings.
One in five participants said they will stake 91% to 100% of their Ether while 14.9% went for 21% to 30% of Ether bracket. 35.1% said they will stake less than half of their ETH holdings.
Those who aren't planning to stake their ETH have decided so because of the lack of holdings. Most of them have their Ether stored in non-custodial wallets.
ETH 2.0 proof-of-stake phase coming in Q3
These eager ETH holders may very soon get to stake their Ether as Ben Edgington of Teku—an Eth 2.0 client operator said the Proof-of-Stake (PoS) aspect of ETH 2.0 could be live in the next two months.
“Beacon is the beginning of the road. It’s a proof-of-stake chain that sustains itself. It could arrive in weeks to months. But I am 80-90 percent confident it will go live by Q3.”
The master chain of Ether 2.0, Beacon is a big milestone in Phase 0 that will allow users to stake their coins and receive regular payouts.
After this will come the next milestone that is Phase 1 that involves implementing sharding.
For this, there will be 64 shards with 500kb data capacity each unlike the 25 kb capacity of a block in a single Ethereum chain now.
Ethereum co-founder says, they’ll get back to selling tokens
Last week during the podcast at the Ethereal Virtual Summit, the founder of ConsenSys, Joseph Lubin said, “We will get back to selling a lot of tokens.”
One of the co-founders of Ethereum, he founded the Ethereum Virtual studio ConsenSys in 2015. And he will restart re-selling tokens. Lubin said about launching tokens,
“It is all about how you sell them, and how you market them.”
Ethereum was first launched in 2014 by raising funds via an initial coin offering (ICO). The network was a popular destination for other ICO launches, given that there are more than 200,000 ERC20 tokens out there.
But unlike now, at that time, three wasn’t much regulatory scrutiny but Lubin may have found a way now. He said,
“You can sell a utility token, and if you do your legal homework — you ensure you are not selling it in huge quantities to speculators and you do certain things based on guidance from the SEC, like basically proving buyers of the token are using it before you open it up for trading — then you’ve got a clean utility token.”