Staking is now available for Ethereum 2.0, but are the returns and conditions worth it?
The long-awaited deposit contract for Ethereum 2.0 has finally been implemented, opening the door to betting opportunities for ETH holders.
Deposits started for real, with more than $ 1 million in ETH arriving on the contract within the first half hour, according to observer The Crypto Cactus. “$ 1,000,000 blocked at $ ETH 2.0 in 30 minutes… Remember anyone who is staking, a one-way bridge. I sent 32 ETH. “
At the time of writing, about eight hours after the official announcement, just over 14,000 ETH have been wagered, according to the ETH 2 Launchpad. At today’s prices, that equates to about $ 5.5 million. For the Beacon Chain mainnet genesis event to start, 524,288 ETH of 16,384 validators are required.
The Ethereum team and several community members have set December 1 as the date on which this will occur. The target value must be in the contract seven days before the launch of Phase 0, otherwise it will be postponed for a week until the limit is reached.
The launch of the deposit agreement has sparked a debate about participation in the crypto community, and there seems to be some hesitation among regular investors so far. In its third quarter DeFi report, ConsenSys suggested that higher income opportunities at DeFi could hinder staking participation.
As a comparison, the $ 5 million deposited is only a third of what DeFi degens dumped into Eminence’s unaudited, unpublished and hacked contract while developer Andre Cronje was sleeping.
Part of the reason for the hesitation may be that the ETH bet on the Beacon Chain needs to be locked up for a long period, leading some to question whether the returns justify the means. The ETH 2 Launchpad explains: “Transfers between validators are disabled until at least phase 1. Validators will have to wait until phase 2 (about two years) to be able to withdraw to a specific fragment.”
Stubborn Ethereans like the founder of Ethhub and Daily Gwei author Anthony Sassano remain unperturbed.
Ethereum colleague Ryan Sean Adams, who recently posted a “how-to” guide for anyone thinking about staking, described it as: “This is the initial bond offering for the largest non-sovereign global economy the world has ever seen. saw.”
Annual returns decrease rapidly, however, the more ETH is wagered. Five million ETH wagered will yield around 7%, which will drop to just under 5% when 10 million ETH are wagered.
At the moment, there is a lot of excitement in the Ethereum community, as many have waited so long for things to start working on ETH 2.0. ETH prices reacted to the news with a 5% jump in the last 24 hours, reaching $ 405