The Ethereum (ETH) network has reached a milestone after the highly anticipated upgrade in Shanghai, as betting activity soars to new heights.
According to the crypto analytics platform cryptorankThe balance of the Ethereum deposit contract has exceeded $40 billion, with users depositing more than 4.4 million ETH since April 12 (the launch date of the Shanghai upgrade).
This spike in staking activity marks a pivotal moment for ETH and its transition to the Proof of Stake (PoS) consensus algorithm.
Persistence Frenzy: Post-Upgrade
Recent data shared by CryptoRank reveals that the balance of the ETH deposit contract on May 23 was 22.6 million ETH, equivalent to $41.1 billion. This huge increase in deposits can be attributed to the introduction of the latest feature that allows validators to withdraw their tokens.
The Ethereum network has seen a surge of interest as users take the opportunity to participate in staking and earn rewards to support the network’s security and consensus mechanism.
Along with the growth in the balance of deposit contracts, Ethereum has offered attractive storage returns. As of today, the APR for running an ETH Validator Situations at 8.66%, providing a meaningful incentive for users to participate in staking.
This is still a large number, which increases the interest in risk among Ethereum investors looking to maximize their returns.
Moreover, according to another data From Token Unlocks, since the implementation of the opt-out on the Ethereum network, investors have deposited 4.68 million ETH in ETH 2.0 contracts.
At the same time, approximately 2.83 million ETH were withdrawn, indicating investors’ continued participation and confidence in the staking process.
The future of Ethereum staking
With the Ethereum network crossing the $40 billion mark in the balance of staking contracts, the growth in staking activity indicates a strong commitment from the community towards the PoS consensus mechanism. This development also highlights Ethereum’s transition to Ethereum 2.0, as staking plays a vital role in securing the network and achieving scalability.
As ETH continues to evolve, the increase in staking participation not only contributes to the security of the network, but also provides an opportunity for ETH holders to earn passive income through staking rewards. By actively participating in staking, users can contribute to the growth and decentralization of ETH while reaping the benefits of staking returns.
Meanwhile, as ETH staking continues to increase, Ethereum founder Vitalik Buterin has warned of a possible overburdening of the network consensus. In a recently published file blog postDon’t overdo the Ethereum consensus, Buterin noted.
The Ethereum founder further added that using the consensus of the Ethereum network for other things could bring “high systemic risks to the ecosystem and should be discouraged and resisted.” However, after the warning, staking ETH has not seen any decline yet but only a slight increase.
Over the past 24 hours, ETH has seen a decline of 3.6%. The second largest crypto asset by market cap has fallen from a trading high just above $2,000 in recent weeks to trading below $1,800, at the time of writing.
Featured image from Shutterstock, chart from TradingView
