STAKING

Ethereum ‘Merge’ Edging Closer as Kiln Testing Continues

Instead of using energy-consuming computers to crunch numbers to validate blocks, ETH holders stake their tokens in a smart contract to validate new blocks on the chain. This drops the network’s power demands significantly, keeping the regulators at bay.

Why it Matters

Over the weekend, crypto investor and industry observer Bob Loukas commented on the narrative and increased talk about ‘the merge’ that developers have said may happen in June.

With inflation at record levels and interest rates at rock bottom, earning a yield on a deflationary asset – which Ethereum will become after the merge – has become a desirable investment for many.

According to on-chain data from Glassnode, around 320,000 ETH has left exchanges since the start of the Kiln testnet, and most of this has gone into staking.

Other industry observers took a closer look at the current state of Ethereum staking.  According to the Beacon Chain explorer, there is currently 10.2 million ETH staked on the consensus layer chain. At current prices, this is worth a whopping $29 billion, which would rank it as the 8th largest cryptocurrency if that was its market capitalization.



Traciwininger
Author: Traciwininger

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