5 million in staking in eight hours while the community cautiously supports ETH 2.0

Staking is now available for Ethereum 2, but are the returns and conditions worth it?

The long-awaited deposit contract for Ethereum 2.0 has finally been deployed, opening the door to staking opportunities for ETH holders.

The deposits began in earnest with over $1 million at ETH landing on the contract in the first half hour according to observers such as The Crypto Cactus.

„$1,000,000 blocked at $ETH 2.0 in 30 minutes… Remember that for anyone staking out the one-way bridge. I have sent through 32 ETH.“
Ethereum commissions are decreasing as DeFi markets cool
As of press time, some eight hours after the official announcement, just over 14,000 ETHs have been used in stake according to the ETH 2 Launchpad. At today’s prices, that’s the equivalent of about $5.5 million. At today’s prices, that equates Crypto Wealth to about $5.5 million. For the Beacon Chain main event to begin, 524,288 ETHs of 16,384 validators are needed.

The Ethereum team and several community members have set December 1 as the date when this will happen. The target quantity must be in the contract seven days before the launch of phase 0, otherwise it will be delayed by one week until after the threshold has been reached.

The launch of the deposit contract has triggered a debate on staking within the cryptocommunity and there seems to be some hesitation among regular investors so far. In its report on the third quarter of DeFi, ConsenSys suggested that higher yield opportunities in DeFi could hamper participation in staging.

Ethereum 2.0 starts the launch process as the deposit contract is activated
By way of comparison, the $5 million deposited is only a third of what DeFi’s degenerates poured into the unaudited, unpublished, hacked Eminence contract while developer Andre Cronje slept.

Part of the reason for the doubt could be that the ETH staked in the Beacon Chain needs to be locked down for a long period, leading some to question whether the returns justify it. The ETH 2 Launchpad explains:

„Transfers between validators are disabled until at least phase 1. Validators will have to wait until Phase 2 (about two years) before they can remove a specific fragment“.
Atari token falls by 70% only days after completion of public sale
Ethereans such as Ethhub’s founder and Daily Gwei author Anthony Sassano remain undisturbed.

Ethereum advocate Ryan Sean Adams, who recently published a „how to“ guide for those thinking about staking, described it as

„This is the initial bond offering for the largest non-sovereign global economy the world has ever seen.
However, annual yields are falling rapidly, with more ETH being placed on stake. Five million ETH in stake will yield around 7% which will fall to just under 5% when a 10 million ETH stake is made.

There is a lot of enthusiasm in the Ethereum community at the moment, as many have waited so long for things to get going at ETH 2.0. ETH prices reacted to the news with a 5% jump in the last 24 hours to $405.