Blockchain analytics firm, Glassnode, has predicted that the amount of Ethereum staked on the network will continue to rise as the launch of Ethereum 2.0 approaches. According to the firm’s April 11 report, there is currently 70,000 ETH worth of staked Ether, which is equivalent to $133 million. Additionally, the report predicts that staking rewards will also increase, with the current figure standing at 100,000 ETH worth $190 million. As Ethereum 2.0 approaches, the amount of staked Ether is expected to increase even further, as users seek to take advantage of the rewards offered by staking.
Staking is a process by which users hold a certain amount of cryptocurrency in a wallet to support the network, and in return, they receive rewards. This is similar to earning interest on savings in a bank account. With the launch of Ethereum 2.0, the network will transition from a proof-of-work (PoW) consensus algorithm to a proof-of-stake (PoS) algorithm. This means that users will be able to stake their Ether to support the network and earn rewards in the process.
The move to a PoS consensus algorithm is expected to make the Ethereum network more efficient and environmentally friendly. PoW algorithms require a large amount of computational power to validate transactions, which can lead to high energy consumption. PoS algorithms, on the other hand, require much less computational power, making them more energy-efficient. This is a key reason why Ethereum is transitioning to a PoS algorithm.
The launch of Ethereum 2.0 has been highly anticipated, and it is expected to take place later this year. The transition to a PoS algorithm will be implemented in phases, with the first phase, known as Phase 0, expected to launch in the coming months. During this phase, users will be able to stake their Ether, but there will be limited functionality on the network.
As the launch of Ethereum 2.0 approaches, there has been a growing interest in staking among Ethereum users. This is reflected in the increasing amount of Ether being staked on the network, as predicted by Glassnode. The rewards offered by staking are also expected to increase as more users stake their Ether, which could further drive adoption of staking.
In conclusion, the move to a PoS consensus algorithm is a significant development for the Ethereum network, and staking is expected to play a key role in supporting the network and driving adoption. As the launch of Ethereum 2.0 approaches, it will be interesting to see how staking evolves and how it impacts the overall Ethereum ecosystem.