While the crypto community is anticipating Ethereum 2.0, a large number of Ether (ETH) holders already have enough ETH to participate in the network.
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Almost 80% of Ether’s total supply (ETH) is held by non-exchange wallets that exceed the amount required for staking in Bitcoin Champion 2.0. According to the latest report of the „Economic Review of Ethereum 2.0“, published on July 16, the report is from executives of the developer of the Ethereum blockchain infrastructure, ConsenSys.
The network accumulates ETH required for staking in Ethereum 2.0
According to the report, 77.7% of current ETH supply, or about 86.6 million ETH, remains in wallets with more than 32 ETH, the minimum amount required to earn staking rewards at ETH 2.0.
While the majority of staking-ready ETHs are in non-exchange wallets, exchanges subject to staking services manage an additional 18.7 million ETHs, according to the report. According to ConsenSys, these scales constitute a „useful and compelling addressable market,“ while the key objective of the rewards should be to „turn these wallets into active validators.
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ConsenSys experts also pointed out that 13.8% of ETH bets will coincide with ETH1’s security levels at historical prices. „We estimate that the goal of ETH’s betting rate for adequate security under historical price fluctuations is 13.8%,“ the report states.
What is Ethereum staking and why is it important?
Ethereum staking is an important part of the much-anticipated update of the Ethereum blockchain, the so-called Ethereum 2.0. This update moves the consensus of implementation of the Test of Work Ethereum or PoW oriented miners to Test of Participation or PoS oriented validators.
Cryptomint holders with more than 32 ETHs are eligible for ETH participation, a practice that allows users to earn rewards in exchange for validating blocks instead of miners.
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In early May, ConsenSys published a report that reveals that 66% of ETH holders planned to bet their coins as soon as the first phase of the ETH 2.0 launch is completed.
While the implementation of Ethereum 2.0 is expected to come later in 2020, the network has been in the test 2.0 network known as „Beacon“ since May 2020.