Amid the Price Boom, $3.2 Billion Worth of Ethereum is Locked in ETH 2.0

January 20, 2021 1:49 PM UTC

Just a month after the launch of Ethereum 2.0 upgrade, roughly 2.6 million ETH has been locked, worth more than $3.2 billion, according to data from Dune Analytics.

Ethereum 2.0 or “Serenity” is an essential upgrade to the network. It intends to direct the network’s security by bringing modifications to its infrastructure—most importantly, the shift to a proof of stake (PoS) model from a proof of work (PoW) consensus mechanism.

To actually put Ethereum 2.0 into action, at least 524,288 ETH were required. This figure has been exceeded by 4.9 times. Based on the reports, several major players, including Binance, Huobi, and Bitcoin Suisse, have launched the Ethereum 2.0 staking service. Meanwhile, cryptocurrency exchange Kraken has seen an abrupt surge in its ETH deposits after introducing its Eth 2 staking service.

Ethereum Price Surge Over 14%

While Bitcoin has shown a trending growth over the course of the last week, Ethereum’s price has also soared over 14% to hit an all-time high of $1,432, as per CoinMarketCap data. 

Several crypto experts predict that an abrupt price rally of ETH may be imminent, pointing to the growing DeFi sector and Ethereum’s network fundamentals. Spencer Noon of crypto VC fund Variant believes that a parabolic bull-run is high. He highlighted that Ethereum is the leading network in terms of daily fees generation. Moreover, the network had minted almost $20 billion worth of stablecoins over the past year.

Market indicators show that trading volumes have been accelerating at a rapid pace. The daily volume of Ethereum transactions now outpaces that of Bitcoin by almost 28%, as indicated by Messari data. At the time of reporting, Ethereum is trading at $1360.

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