Ethereum 2.0: The Merge triggers massive investor staking. On the eve of the new Ethereum 2.0 merger The Merge, token staking is at an all-time high. It would seem that the upcoming announcement of the new version of the crypto is highly anticipated.
It must be said that The Merge is supposed to give a real boost to the second largest currency on the market. The future of Ethereum depends on the success of this transition because the stakes are very high. Ethereum is starting to offer transaction fees that are way too high compared to its counterparts.
With The Merge, we will reach a new level with more secure, faster exchanges and lower energy costs. Ethereum staking has been possible since 2020, but it has accelerated enormously in recent days. With this process, investors hope for substantial gains, aided by PoS. Discover in this article, the underside of this growing trend.
Staking with Ethereum 2.0, explained in a nutshell
When talking about cryptocurrency staking in French, there can be some ambiguity. In our language, this can be both keeping the crypto on your wallet or validating transactions via the Proof of Stake system.
The first term refers to a classic investment where one resells to make a capital gain when the other assumes passive income over the long term.
Here, we are indeed talking about the second option which assumes passive gains. The challenge of Ethereum 2.0 is to move from the Proof of Work system to the Proof of Stake system.
Investors are starting to stake their tokens anticipating the transition. As said before, staking has been available since 2020. But with the delay of the Ethereum project, the hype was not there until recently
Ethereum 2.0 staking numbers
According to well-known crypto reporter Wu Blockchain on Twitter, there are nearly 13.5 million ETH 2.0 deposit contract addresses for this month of August with a staking price of just over 11%. It can be said that deposits are showing a sudden acceleration, with up to 36,000 deposits being added every week.
The graph shows us a constant progression of Ethereum in recent months. Ethereum 1.0, on the other hand, loses a lot of speed. Investors seem optimistic about the success of the project.
If the team in charge of Ethereum continues to demonstrate the smooth running of the transition, we can expect an acceleration of deposits in the days leading up to The Merge.
The reasons for this sudden increase in Ethereum 2.0 staking
The increase in Ethereum 2.0 staking is not just happening because of the impending merger. It is above all the success of the testnet on Goerli that will have convinced a good number of investors to bet on The Merge. Performed on August 11, the test is a total success.
No hitch will have occurred on the version that seems closest to the original Ethereum network. Now, there is almost no doubt that the transition will arrive in September.
This simple announcement alone explains the growing enthusiasm of Ethereum holders. But that's not all, Ethereum has another good news that benefits it.
Chainlink will support Ethereum's new PoS
Chainlink is a decentralized oracle blockchain that runs on Ethereum. Created in 2017 by Sergey Nazarov, this open-source technology offers a secure and fast environment to host Ethereum PoS.
This is very good news for the credibility of the project. With such support, Ethereum further demonstrates the viability of the transition. With the bridge to PoS just days away, the crypto world is holding its breath and hoping for the complete success of one of the biggest events of 2022.
How to stake Ethereum 2.0?
ETH 2.0 staking is accessible to everyone, by performing a few manipulations on your account. For this, you just need to log in to the crypto exchange platform you use like Crypto.com or Binance.
The basic way to stake Ethereum is to become a validator. But this status requires having 32 ETH. As this solution concerns very few investors, it is possible to place your ETH 2.0 in a pool.
Pools for investing in ETH 2.0
Ethereum staking pools are made up of several small investors pooling their Ethereum. Thus, an investor who places his ETH in a pool will receive rewards proportional to what he has invested.
However, these pools charge service fees that can reach a certain amount. This is, however, the most accessible way to stake ETH without owning 32.
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