Quick take:
Staking deposits for Ethereum 2.0 surpassed 12.7 million ETH ahead of the network’s move to adopt a proof-of-stake consensus layer for transactions. The switch is known throughout the crypto ecosystem as “The Merge” and could happen this summer, as EWN reported.
As of press time and current coin prices, the total value of staked ETH is worth an estimated 25.9 billion USD. Also, deposits have been made by 73,808 unique addresses so far, per data from Dune Analytics.
ETH reclaimed a $230 billion mark cap on Monday after rising above $1,800.
ETH 2.0 staking initially rolled out in November 2020 after a consensus vote was reached to move away from a proof-of-work system. In a PoW network, miners are responsible for validating transactions and bolstering network security.
However, this consensus mechanism also led to a key issue closely associated with sending funds through the Ethereum blockchain – network congestion and expensive gas fees. Gas fees represent the cost paid by senders to complete translation on ETH’s chain.
Moving to a proof-of-stake should negate this critical obstacle according to rhetoric from core developers and crypto proponents alike. Also, stakers replace miners in a PoS blockchain. These stakers validate transactions using nodes.
The Merge is arguable the biggest event in crypto history as Ethereum is the second-largest blockchain in the ecosystem and one of the oldest networks to leverage decentralized technology.
Both ETH core developer Preston Van Loon and Co-Founder Vitalik Buterin
have suggested that the transition could happen in August, barring any major delays. The Merge previously passed key testnets like Kiln and Ropston as well as a major shadow fork test back in April.