As Ethereum’s transition to Proof of Stake (PoS) approaches and the network’s hash rate hits another all-time high, Ethereum 2.0 contracts, which today’s Ether exchange rate approaching 13 million Ether worth $22.6 billion using Furthermore, according to decentralized finance (defi) educators, the ever-increasing $22.6 billion worth of ethereum will not be released until another upgrade is implemented following The Merge.
Ethereum 2.0 Contract Near 13 Million Ether Locked – Defi Educator Says The Merge Won’t Be a Negative Price Catalyst
.
On June 4, 2022, etherscan.io’sweb page hostingetherscan.io’s webpage hosting ethereum 2.0 contractsshows 12,785,941 ether locked in contracts. The ethereum 2.0 contract holds so manyETHvalidator funds that it takes 32ETHto become a validator, since it takes 32to become an ETH validator. Each day, a significant number of validators lock funds into this contract, and the current value locked into the contract is the equivalent of $22.6 billion using today’s ETH exchange rate. In the last 24 hours, 20+ deposits of 32 ether ($56,684) have been added to the contract.
26} is $22.6 billion; the ETHis locked, illiquid, and may not be so for quite some time. This means that once the 32are deposited and the ETHis deposited, the funds will remain locked until the post-PoS transition plan is adjusted. Just recently, a decentralized finance (defi) educatorKopihas published a threadabout the assumption that 12.7 million ether will be immediately unlocked and dumped after The Merge.
“I’ve noticed some people consider The Merge as a negative price catalyst due to a supposed huge [ethereum] unlock – this is wrong,” Korpi explained on Twitter. “Staked [ethereum] won’t be unlocked at The Merge. The Merge does not enable withdrawals. This is planned for another ethereum upgrade that may take place 6-12 months after The Merge. In other words, both staked [ethereum] and staked rewards will not be in circulation for a long time,” Korpi added. The defi educator continued.
unlocked [ethereum] will be released slowly. Even if withdrawals become available, not all [ethereum] wagered will be available immediately. There will be an exit queue that may take a year or more in the worst case, months in a more realistic scenario. [Release will be slow.
Korpi opines that the “Ethereum Maxi” staking coin will not be so easy to sell
Just recently, the Ethereum hash rate hit a record high of 132 petahashes per second (PH/s) on June 4 with a block height of 14,902,285. at the end of May, transaction fees forETHETHtransaction costs dropped below $3, a 10 month low. At the recent Permissionless conference, Ethereum software developer Preston Van Loon saidThe Merge may happen in August. The Merge may happen in August. Vitalik Buterin, co-founder of Ethereum, confirmed that The Merge could be implemented by August, but he also mentioned a delay.
In recent network records, Ethereum’s Beacon chain experienced a seven-block reorganization, and this type of issue could spark delays in the PoS transition.Ethereum’s Beacon chain is a proof-of-work (PoW) Ethereum Ethereum developer Tim Beiko recently detailed that The Merge will likely be up and running by the third quarter of 2022.”strongly suggest” that they not invest in mining rigs,
emphasized.
defi educator Korpi continued his Twitter thread, explaining that the ethereum 2.0 withdrawal process will be slow.” In order to withdraw “ethereum” a validator must exit the active validator set, but there is a limit to the number of validators that can exit per epoch. Currently there are 395k validators (active + pending). If no new validators are set (very unlikely), it will take 424 days for all validators to exit; Staked [ethereum] is often a stack that will never be sold.” Korpi added
Who voluntarily locks [ethereum] for months and doesn’t even know when withdrawals will be available? The [Ethereum] maxi, no doubt. Most [Ethereum] stakers are long-term investors. They are not interested in selling, especially not at the current price.
What do you think about Ethereum 2.0 contracts closing in on 13 million ether, what do you think about Korpi’s statement and the slow unwinding process he described? Let us know what you think about this subject in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons