Ethereum
47.36 million ETH stake in ETH2 Beacon deposit contract
Ethereum 2.0 staking has seen significant growth and a major milestone has been reached. The deposit contract for Ethereum staking on the Beacon Chain reached an all-time high of 47.36 million ETH this week.
Interestingly, this represents 33.9% of Ethereum’s total supply.
ETH2 Staking Milestone
According to data Shared by crypto analytics platform Santiment, this is a dramatic increase from two years ago, when it held just 10.9% of the supply, effectively tripling its share.
“The ETH2 Beacon deposit contract, used for staking deposits for Ethereum 2.0, now holds an all-time high of 47.36 million ETH, representing 33.9% of the total supply and more than tripling from the 10.9% it held two years ago.”
Feelings too Underlines the redistribution of ETH across different wallet tiers. For example, wallets holding more than 10 million ETH, representing the Beacon deposit contract, have increased their share of the ETH supply by 23% over the past two years.
In contrast, holdings in other wallet categories declined, with wallets holding more than 10,000 ETH (excluding Beacon deposit contracts) dropping by 5.3% and wallets holding 10,000 ETH or less dropping by 17.7% over the same period. This change signals growing participation in Ethereum 2.0 staking.
Impact of growing participation in Ethereum staking
Despite the growing trend towards staking, data suggests that staking reward rates and inflation rates have unexpectedly decreased.
The reward rate represents the annual percentage yield of staking ETH, similar to the interest earned for contributing to the security of the network. Meanwhile, the inflation rate measures the rate at which the total supply of ETH is increasing, with new ETH created as staking rewards contributing to the inflationary trend.
The lower reward rate means that stakers will receive less new ETH per staked token in the short term. However, the reduced inflation rate means that the overall supply of ETH increases more slowly. This could benefit the value of ETH in the long term.