As the release time approaches day by day, the Ethereum network continues to gain more and more support. The network has now successfully exceeded 200,000 validators, which means that there are now more than 200,000 validator nodes running before ETH 2.0 is released and counted. At present, the number of collateralized ETH has exceeded 6.6 million, and the total value of ETH collateralized in the network currently exceeds $14 billion.
In one month, more than 20,000 validators were added to the network, increasing the number of validators from 180,000 to more than 200,000. Following this, more and more ETH is pledged on the network. More and more investors continue to pledge their tokens and look forward to upgrading to ETH 2.0, which will bring rewards to validators.
Related Reading | Ethereum EIP-3675 for ETH 2.0 upgrade is released on GitHub
At this point, the amount of pledged ETH now totals more than 5% of the entire circulating supply of ETH. The current annual APY of ETH pledged on the Ethereum network is 6.1%.
Moving to proof of stake
Since the announcement of the project, the transformation of the Ethereum network from proof-of-work to proof-of-stake has been a hot topic in the encryption field. Although the project still needs more time to complete than Ethereum CEO Vitalik Buterin initially speculated. The CEO said that there were many delays in this move, most of which were caused by the personnel performing the upgrade rather than technical issues.
ETH price tests $2,300 resistance point | Source: ETHUSD on TradingView.com
Ethereum currently still uses a proof-of-work mechanism to operate, but moving to proof-of-stake will make the network require less electricity to mine coins and make mining much less troublesome than it is currently. Reducing electricity consumption will solve the environmental pollution problem of the mining industry, which has always been the focus of debate in the mining industry.
Recently, the EIP-3675 It was formalized as an improvement proposal, laying the foundation for the “merger”. This happened before the scheduled London hard fork, which will take place about a week later on August 4. The hard fork will see fuel costs burned because the current system is switched to a new and better system.
Ethereum price reaction
As ETH 2.0 broke the 200,000 validator milestone, the price of Ethereum continued to rise. Last weekend, the price of Ethereum rose by more than 10% because the market witnessed a huge operation. Provide much-needed momentum for ETH to break through the $2,000 price level and continue its upward movement.
It is expected that more validators will join the Ethereum network. And due to the cost consumption structure of the ETH 2.0 upgrade, the amount of ETH mined in each block is reduced, so the predicted ETH circulation will decrease. Therefore, the new deflationary nature of the network will introduce scarcity, thereby increasing the value of mined coins.
Ethereum is now easily trading above $2,000 and continues to maintain its upward momentum as the price continues to test the resistance level of $2,300.
Featured image from Blockchain News, chart from TradingView.com