The Ethereum network continues to experience growing support as the launch approaches with each passing day. The network has now successfully passed 200.000 validators, which means there are now over 200.000 validation nodes running prior to the launch and count of ETH 2.0. The amount of ETH at stake now stands at over 6,6 million coins, with a total value of over $ 14 billion.
Over 20.000 validators were added to the network within a month, bringing the number of validators from 180.000 to over 200.000. With this came an increasing number of ETHs bet on the net. More and more investors continue to stake their coins in anticipation of the upgrade to ETH 2.0, which will bring rewards for validators.
At this point, the amount of ETH up for grabs now amounts to over 5% of the entire circulating supply of ETH. With a current annual APY of 6,1% on ETH staked on the Ethereum network.
The move to Proof Of Stake
The transition of the Ethereum network from proof of work to proof of stake has been a hot topic in the crypto space ever since the project was announced. Although the project continues to take longer to complete than Ethereum CEO Vitalik Buterin initially assumed. The move had numerous delays, most of which are attributed to staff working on the upgrade and not technical issues, according to the chief executive.
Ethereum currently still works with a proof of work mechanism, but the move to proof of participation would see the network require less electricity to mine coins and make the hassle of mining a lot less than it currently is. Reducing electricity consumption will address the problem of environmental pollution from mines, which has long been a bone of contention in the mining industry.
Recently, EIP-3675 was formalized as an improvement proposal, which sets the stage for “The Merge”. This takes place just before London's Hard Fork which is expected to take place in about a week, on August 4th. The hard fork will see gas taxes burn as the current system is replaced with a new and better one.
Ethereum price reactions
The price of Ethereum continues to experience increasing improvements as ETH 2.0 passes the 200.000 validator milestone. Over the weekend, the price of Ethereum rose more than 10% as the market witnessed an incredible run. Give ETH the boost it needs to overcome quotation of $ 2.000 and continue an upward movement.
More validators are expected to jump on the Ethereum network. And as the amount of ETH mined in each block is reduced due to the commission consumption structure of the ETH 2.0 update, the expected amount of ETH circulating will be less. Hence the new deflationary nature of the network will introduce scarcity, thereby increasing the value of the mined coins.
Ethereum is now trading comfortably above $ 2.000 and continues to see upward momentum as the price continues to test the $ 2.300 resistance point.
