Ethereum 2.0 Blockchain to Hit Milestone | 6M Staked ETH

The amount of Ethereum staked on the Beacon Chain is about to reach a new milestone this week as approaches 6 million ETH.

The Ethereum Beacon Chain launched seven months ago today on December 1, 2020, and it has been a resounding success in terms of staking.

This week, the amount of staked ETH will surpass 6 million, which at current prices is estimated to be worth nearly $13 billion.

The ETH 2.0 launchpad is reporting a current amount of 5,942,695 ETH staked on the network. This is equivalent to just over 5% of the entire supply which is locked up. It is also reporting that there are over 180,400 validators at the time of writing.

ETH staked is locked into the smart contract and cannot be removed until Phase 1.5 of the Serenity upgrade integrates the ETH 1.0 chain with the Beacon Chain. This is not expected to happen until sometime in late 2022.

Staked ETH is currently generating an annual percentage yield of 6.4%. This may be a little less for those that have used staking services which will take their own cut.

Ethereum Fundamentals Still Bullish

In addition to the large chunk of Ethereum staked is a further 8.7 million ETH locked across various DeFi platforms, according to Defi Pulse. This is valued at an estimated $19 billion at current prices and accounts for almost 7.5% of the entire supply.

One major factor influencing the amount of Ethereum being invested is the cost of transfers on the network. From an unsustainable peak of over $70 in May, average network transfers have dropped to a more reasonable $5.45 today.

This is still too high for small transfers, however, and it is hoped that the London upgrade and adoption of more Layer 2 solutions will alleviate some of the load on the network.

The London hard fork is scheduled for later this month. It will introduce the long-awaited EIP-1559 upgrade which adjusts the fee auction calculation method. This in turn should make gas fees more predictable but will not necessarily lower them during peak demand.

ETH Price Outlook

At the time of writing, Ethereum was trading flat on the day at $2,160. Last week, ETH prices bounced off support at $1,700 twice, and the asset has made 9% over the past seven days.

For further upsides, it needs to break resistance at the 50-day moving average, which is currently at the $2,400 price level.

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