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More than 10% ETH deposited in ETH 2.0 contract but here’s the caveat

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Ethereum, the largest altcoin continues to suffer the bearish winter within the crypto market. ETH slipped below the $2k mark following aggressive sell-offs from traders/investors. The number of addresses in loss reached an ATH of 34,966,535 as per Glassnode. Thus, showcasing the reason behind the event.

However, the altcoin has another ace up its sleeve- something that ETH relied upon.

Smiling through the pain

For starters, “The Merge” refers to the long-awaited upgrade to the Ethereum blockchain. The number two cryptocurrency would switch to a proof-of-stake model, a change that should eliminate concerns about Ethereum’s environmental impact. Likewise, improve its transaction speed.

To achieve the ‘deflationary’ status, and in line with the Merge, the said cryptocurrency kept destroying a portion of its own supply. In fact, the amount of supply last active 3y-5y reached a 5-month low of 18,579,468.002 ETH.

Source: Glassnode

The in-transit merge has done huge favors to the largest altcoin network. As the Ethereum network accelerates the shift towards ETH 2.0, investors have geared up for the staking functionality by continuing to deposit Ether.

As of 30 May, the latest stats recorded an impressive figure. The number of staking ETH 2.0 deposit contract addresses reached 12,711,363, and the staking rate has reached 10.72%. This means more than 10.72% of the ETH, currently in circulation is deposited in ETH2.

Source: oklink.com

In addition, Ethereum network fees,at the time of writing, were the cheapest they have been in over ten months. The average ETH transfer fee slid to a low of $2.96 per transaction.

The aforementioned factors could, indeed, help the flagship coin register a short rally soon. In fact, at press time, ETH did witness an 8% surge that aided ETH in crossing the $1.9k mark.

The question remains unanswered

ETH’s ambitious switch has met different roadblocks in terms of delays over the months. Recently, it experienced a high-level security risk known as a blockchain “reorganization.” To make things worse, no definitive date has been released for the “much-anticipated” upgrade.

The question remains, until when can ETH depend on this “anticipation” to register some gains?

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Shubham is a full-time journalist/ Crypto data analyst at AMBCrypto. A Master's graduate in Accounting and Finance, Shubham's writings mainly focus on the cryptocurrency sector with particular emphasis on market research studies and communications for >2 years. Also, a die-hard Chelsea fan #KTBFFH.
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