The ETH 2.0 deposit contract can only be unlocked after the PoS change has been postponed to the second half of the year.
The custodial contract for staking Ethereum (ETH) on the Beacon Chain reached a balance of 12 million ETH on Friday. The total value of Ether locked in the Eth2 contract is around $34.5 billion.
The custody contract was launched in November 2020 and currently contains about 10% of the total ETH in circulation.
Beacon Chain Staking Agreement. Source: Eterscan
The Beacon Chain is the first important step in Ethereum’s transition from a Proof-of-Work (PoW) consensus model to a Proof-of-Stake (PoS) consensus model. A trader must invest at least 32 ETH to become a validator in Eth2. Thus, the largest beacon chain deal worth $34.5 billion highlights the huge demand and confidence in the future of Eth2, despite numerous delays over the past year.
ETH developers began community testing of the PoS network in December, but the tentative June 2022 merger date was pushed back again, and no specific merger date was proposed.
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Ethereum’s biggest upgrade since its inception has been plagued with numerous issues and persistent delays. Despite this, the deposit contract has grown significantly, with more than 2 million ETH deposited in the last two months.
The transition from Ethereum to PoS has created mixed feelings in the crypto market, where, on the one hand, the energy-conscious group has welcomed the move, claiming it will reduce network consumption by 90%; On the other hand, bitcoin (BTC) advocates such as Jack Dorsey believe that PoS mining consensus is more centralized and less secure than PoW.
The merger of Beacon Chain with the Ethereum mainnet will complete the transition to Eth2. The upcoming merger is expected to put the Ethereum network on par with centralized payment systems and increase the speed of payment processing by several orders of magnitude through sharding (parallel processing).