Ether Investors Excited about Staking as ETH Balance on Exchanges Surge

Must Read

NiceCash Lets Anyone Get Maximum Out of DeFi

in One Click NiceCash launches its nVaults -...

CubeBit has come forward to sponsor Future Blockchain Summit 2020

November-18-20 - CubeBit 2.0 has come forward to sponsor Future Blockchain Summit 2020. The event will be held at...

Bitcoin Eyeing $11800 After Intense Drop

As we saw earlier today, Bitcoin started by declining from $11349 to $11176, roughly 1.76%.
- Advertisement Banner
Earn Free Bitcoin

This past week, the crypto market enjoyed greens, having recovered most of the losses recorded during the March sell-off.

In 2020, Ethereum, the second-largest network, is particularly seeing strong growth and is outperforming Bitcoin. While Bitcoin, trading around $7,550 and is up over 3% YTD, Ether is seeing returns of more than 48% trading at $194.

The price is further expected to spike above $200 as a trader points out, “bullish because 200DMA has been flipped into support. Bearish because I’m skeptical of rising wedges. If we see a bullish breakout of the wedge, I’d feel a lot better looking for long opportunities.”

Similarly, the ETH balance on exchanges is increasing.

While BTC held on exchanges decreased significantly since early March, the amount of Ether held by crypto exchanges has been growing since 2018.

As we have reported, investors of Grayscale’s Ether product ETHE are also showing special interest and paying a premium as high as 430%.

“Investors buying these shares are essentially buying ETH at a $107.5B market cap, 78% of Bitcoin’s $138.5B market cap,” said analyst Ceteis Paribus. Ethereum’s reported market cap is currently $21.2 billion.

“The only thing I can think of is retail ignorance, but I mean, that’s a weak reason for this to go on for months. I really don’t get it,” Paribus said about the reason behind this premium.

With tons of shares unlocking this summer and then later in the year, it would take down the premium.

“If ETH 10x from here, and the premium collapses, ETHE investors don’t even double their money,” said the analyst. This will push ETHE prices down but won’t affect Ether prices.

22,810 Active Validators

Amidst this growing figure, the number of smart contracts deployed on Ethereum also exploded higher. In March, the deployed smart contact reached an all-time high, 75% higher than the former record set in October 2019.

Almost 2 million smart contracts were deployed on the Ethereum network in March while in the past year only October was the month that saw more than 1 million smart contracts.

Despite this high activity, the dollar value of the ETH spent on deploying these March contacts was $11,000 far below its peak of $34,138 in June 2019.

Besides smart contracts, the active validators since the launch of ETH 2.0 testnet have reached 22,810 with 32 ETH deposited for staking, as per Etherscan.

The Topaz testnet was launched last week by Prysmatic Labs. The final restart for Ethereum 2.0 Phase 0 was started after completing three major milestones – Ruby, Sapphire, and Diamond.

This Topaz test network represents the full Ethereum 2.0 Phase 0 mainnet configuration which means validators will have to deposit the full 32 ETH to participate.

A calculator tool to calculate Ethereum staking rewards is also launched by ahead of ETH 2.0 launch later this year. The annual interest offered on the ETH staking is about 14%.

“The total ETH staked (as a percentage of circulating supply) plays a significant role in calculating the annual interest earned on a validator’s stake. The higher the percentage, the lower the yield. Rewards are not issued until the network reaches genesis (524,288 ETH staked).”

ETH 2.0 marks the full transition of the Ethereum network’s Proof-of-Work to Proof-of-Stake. This upgrade is also expected to provide greater transaction throughput, cheaper transactions, and sharding for scalability.

- Advertisement -
- Advertisement -

Latest News

Wyoming Amends Insurance Code to Allow Insurance Companies to Invest in Bitcoin & other Cryptos

In the first provision of its kind, Wyoming is allowing the domestic insurers to invest...
- Advertisement -Earn Free Bitcoin

CubeBit has come forward to sponsor Future Blockchain Summit 2020

November-18-20 - CubeBit 2.0 has come forward to sponsor Future Blockchain Summit 2020. The event will be held at the Dubai World Trade Centre,...

USDT Is A Game Changer For Online Poker

CoinPoker - the flagman of the industry, the biggest and the oldest pure crypto poker room is the first to...

DeepTradeBot: The innovation of large companies at your service

DeepTradeBot is a collection of automated trading tools developed by Deep Neuro Networks LTD, a London, England-based company dedicated to artificial intelligence and... Instant Crypto Exchange Now Supports REN Token Trading

Decentralized finance is leading the way of the cryptocurrency industry, with the REN Protocol at the front. REN Protocol is...