The new all-time high price puts Ethereum 2.0 in third place among the largest staking projects.
In just one month, the market capitalization of the second-largest cryptocurrency doubled from 88 to 174 billion US dollars. Price going above 1600 US dollars and making new all-time high. A year ago, Ethereum price was just below 200 US dollars.
As a result of the price increase, the total value of all Ethereum staked in Eth2 has reached a new all-time high of 4.1 billion US dollars.
This places Ethereum as the third-largest staking project behind Polkadot (DOT) and Cardano (ADA). The staking capitalization of Polkadot currently amounts to approximately 9.9 billion US dollars. Cardano is only slightly behind with 9.5 billion US dollars.
Apparently, there is a large gap between Ethereum and its staking competitors, But Ethereum 2.0 is only in the test phase. A comparatively small proportion of only 2.19 percent of the ETH supply is deposited in the staking Contract. On the other hand, in Polkadot, 60 percent of the entire supply is staked, while Cardano has 70 percent of its supply deposited in staking.
The figures already indicate the immense potential of Ethereum 2.0. Because staking in Ethereum is only beginning and is in the testing phase.
The Ethereum staked cannot be withdrawn until the launch of phase 1. But still, Eth 2 has a great demand, which shows the trust of investors.
Originally it took 16,384 validators to launch the Beacon Chain, the testnet environment that runs parallel to the Ethereum mainchain and acts as a Proof of Stake. Currently, the Beacon Chain counts over 78,000 validators. More than 12,000 validators are also waiting for their entry into the next slots.
The fact that Ethereum is behind Polkadot and Cardano in terms of staking capitalization seems only a matter of time. Ethereum 2.0 is without a doubt the biggest staking project.
In addition, with the introduction of the sharding in Phase 1, the network receives the much-needed scaling booster that will minimize the transaction costs.
Ethereum future is bright, and staking in ETH 2.0 is trusted by a vast number of investors. With time Institutional investors will definitely come in to buy ETH like BTC. The interest of institution buyers will not only help ETH price increase but also the overall Ethereum worth and name will become popular.
Originally published at https://thecryptobasic.com on February 4, 2021.
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Ethereum 2.0 Became The Third Biggest Staking Project After Polkadot And Cardano was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.