ethereum 2.0 staking has seen significant growth and a major milestone has been reached. The deposit contract for staking ethereum on Beacon Chain hit an all-time high of 47.36 million eth this week.
Interestingly, this represents 33.9% of the entire ethereum supply.
ETH2 staking milestone
According to the x.com/santimentfeed/status/1810843757530829023″ target=”_blank” rel=”noopener” data-wpel-link=”external”>data As shared by cryptocurrency analytics platform Santiment, this is a dramatic increase from two years ago when it held just 10.9% of the supply, effectively more than tripling its share.
“The Beacon ETH2 deposit contract, used to stake deposits for ethereum 2.0, now has an all-time high of 47.36 million eth. This represents 33.9% of the total supply and more than triples from 10.9% two years ago.”
Santiment also x.com/santimentfeed/status/1810843757530829023″ target=”_blank” rel=”noopener” data-wpel-link=”external”>Outstanding The redistribution of eth across different wallet tiers. As such, wallets holding more than 10 million eth, representing the Beacon deposit contract, increased their share by 23% of the eth supply over the past two years.
On the other hand, holdings of other wallet categories have declined: wallets holding more than 10,000 eth (excluding the Beacon deposit contract) fell by 5.3% and wallets holding 10,000 eth or less declined by 17.7% over the same period. This shift signaled a growing participation in ethereum 2.0 staking.
Impact of increasing participation in ethereum staking
Despite the growing inclination towards staking, the data ethereum-2-0″ target=”_blank” rel=”noopener” data-wpel-link=”external”>suggests that both staking reward rates and inflation rates have unexpectedly decreased.
The reward rate represents the annual percentage yield for staking eth, similar to the interest earned for contributing to the security of the network. Meanwhile, the inflation rate measures the pace at which the total supply of eth grows, with new eth minted 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 lower inflation rate means that the overall supply of eth is expanding more slowly. This could benefit the value of eth in the long term.
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