Although there are decreases in Ethereum price, the ETH 2.0 deposit contract continues to increase day by day. The ETH 2.0 deposit contract broke the all-time record with 8,866,946 ETH. On the other hand, the amount of ETH burned in approximately 5 months exceeded 5 billion dollars.
The ETH 2.0 deposit contract hit a new ATH of 8,866,946 ETH. Its approximate value is $33,756,463. In addition, the number of investors who want to be validator in ETH 2.0 has exceeded 276 thousand people. The ETH 2.0 upgrade is a crucial part of the future of the Ethereum whole blockchain ecosystem. With the ETH 2.0 upgrade, it will change from a proof-of-work (PoW) validator protocol to a proof-of-stake (PoS) protocol. In other words, miners who confirm transactions will be replaced by validators. In addition, the rewards received by the miners will be received by the validators who stake their ETH after ETH 2.0.
After the 5th august Ethereum london upgrade, the EIP-1559 burn mechanism is activated. The amount of ETH burned in 5 months reached 1,335,056 ETH. In other words, the amount of ETH burned exceeded 5 billion dollars. Currently, 6.16 ETH per minute continues to be burned. According to current data, when we calculate annually, 3.2 million ETH can be burned every year. According to the current ETH price, this means more than 12 billion dollars. Decreasing the supply of an asset has a very significant effect on increasing the price of the asset. After the ETH 2.0 upgrade, the energy cost will be eliminated and there will be a significant reduction in costs, which may also be effective in reducing the total supply.
Ethereum is currently trading at $3807. It is struggling to recover and stay above $3800 in the first week of 2022. If it can form support above $3800, it could retest around $4000 in the coming days. Many investors are already staking their assets to be validators for the ETH 2.0 upgrade. It appears to have reached a record high. Also, those who stake their ETH for the ETH 2.0 deposit contract earn around 5.1% APR.
In August 2020, Beacon chain was lived, so staking began. I think the next phase, merging, will be active in the first quarter of the year. After the merge is live, the final phase, the Shard chains date will be known approximately. After the merge date is set, ETH can start to rise and the rise may accelerate as the merge is live.
I have always preferred to earn by staking rather than mining. In addition, after the ETH 2.0 upgrade, the prices of graphics cards that are sold much more expensive than their value will decrease significantly. I will be most happy about it.
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