Vitalik Buterin: 1% of issued ETH sent to Ethereum 2.0 deposit contract

The deposit contract of the second version of the Ethereum protocol attracted 1.16 million ETH (~$689.99 million), equivalent to 1.02% of the circulating supply of the second-largest cryptocurrency by market capitalization.

Co‑founder Vitalik Buterin expressed satisfaction with the trajectory and the degree of decentralisation achieved. He said the metrics exceeded expectations.

1% of all ETH is now in the deposit contract!

Updated stats; the decentralization numbers are a bit worse than last time but only because they now properly treat Bitcoin Suisse with their multiple addresses as a single unit. Still doing far better than I expected! pic.twitter.com/B0ck5YGTUk

— vitalik.eth (@VitalikButerin) December 6, 2020

Deposit contract allows sending ETH from the existing network to ETH2, validating the stakers’ authority.

After transfers of 177,248 ETH and 244,096 ETH on November 23 and 24, which allowed to exceed the threshold of 524,288 ETH required for launch, users reduced activity. Since then they have been sending to the deposit contract about 15,000–40,000 coins, with spikes of up to 75,000 coins on certain days.

Data: Dune Analytics.

According to Launchpad, staking yields have fallen to 14.5% per annum. At launch, the figure stood at around 25% per annum.

What is staking and how to earn from it?

Beaconscan data show that the number of validators has approached 35,000. 99 out of 100 registered validators participate in issuance and in block validation.

Data: Launchpad.

1.16 million ETH blocked in ETH2 staking trails nearly sixfold the amount used in DeFi protocols. According to DeFi Pulse, the figure stands at 6.88 million coins (~$4.07 billion).

The next chart shows the decline in the number of locked coins since the launch of the deposit contract in early November.

Data: DeFi Pulse.

As noted, many leading exchanges, including Coinbase and Binance, have enabled ETH2 staking.

For more on the new system and the features of the zero phase, as well as future stages of ETH2 development read our piece.

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