The announcement in November of a new network, Ethereum 2.0, to its investors was met with a lot of optimism despite the fluctuating prices of the ETH token itself. The new network which comes with a lot of upgrades, such as faster transaction turnaround time and a host of other advantages has been solid since its inception and now had been ranked by analyst as the 4th largest in terms of total value locked in staking within roughly six weeks of the Eth2 deposit contract going live.
Ethereum 2.0 not fully launched as other phases are expected to roll out
In the official announcement in late November, the network announced that the Eth2 would launch in different phases. The initial phase, phase 0, is currently being utilized as 2021 is expected to see the other phases launch. Despite the withdrawal functionality not yet enabled on the new network, and no precise estimation for the launch date of the other phases of the network, nearly $1 billion worth of Ether has already been designated for staking on Eth2.
In a research carried out by Staking Rewards, a cryptocurrency data aggregator, over 1.5 million Ether equivalent to 1.35% of Ethereum’s supply has already been deposited for staking and with Ether staking rewards currently pegged at 13%, a single stake of 32 ETH would earn $2,725 annually at the current price of $644.
Ethereum founders are championing the largest staking network in the world
It is interesting to note that Ethereum Co-founders are kings in the game as their affiliate companies are leading the biggest staking networks in the world. Polkadot, a company co-founded by Gavin Wood, a co-founder of Ethereum, is currently the largest staking network in terms of Total Value Locked.
Polkadot, since its launch in May, has seen nearly $3.4 billion, which represents 68% of its supply, designated for staking. Cardano is also a rival network of Polkadot and ranks as the second-largest staking network in terms of Total Value Locked. It has dedicated about $3.3 billion(68%) of its supply to staking since July.
Interestingly, the company is also co-founded by Charles Hoskins, Ethereum Co-founder. Ethereum 2.0 developers continue to leave their customers in the dark concerning the release of the other phases of the network, especially the withdrawal stage, which is being anticipated. Cryptocurrency staking service provider Rocket Pool had recently hinted that the function might go live during the first quarter of 2021.