Just over a month after ETH 2.0 went live with the launch of Phase 0, the amount of Ether locked in the protocol has surpassed $2.4 billion.
This explosive increase in the total value of ETH locked has come about due to bullish ETH price activity that has seen it surge past $1,200 for the first time since Jan 2018.
Since the turn of the year, ETH has appreciated over 48%, giving the altcoin a better ROI than BTC in the same period. One of the vital network metrics that has been impacted by the ETH rally is the cost of running an eth2 validator.
Rising ETH prices translate to higher earnings for validators, who earn a relatively stable 0.008 ETH/day. An appreciating ETH token now means that these earnings’ current market value has hit about $8 a day, a lucrative investment for any crypto holder.
Unfortunately, the ETH rally has also raised the barrier to entry for new users who wish to run validators on the network. According to one Ethereum and DeFi enthusiast, the cost of running an ETH 2.0 validator now stands at $38,400.
ETH 2.0 is Onboarding Validators at a Rapid Clip
Lucrative validator rewards are a key reason why more investors are looking to become new network participants by locking funds into the deposit contract.
The validator queue for users who have purchased and deposited 32 ETH is only growing longer. As of Jan 6, the number of new validators who had staked 32 Eth stood at 17,425. All these new participants will have to wait up to 20 days before they’re able to earn rewards from performing block proposals and attestations.
Unlike custodial staking providers like Coinbase, ETH 2.0 is offering a decentralized staking service. This approach enables a user to determine their deposits’ future in the true spirit of the saying “not your keys, not your coins.”
The eth2 staking service has become wildly popular in the crypto space. Thousands of aspiring validators who realize the blockchain’s potential have already locked funds into the deposit contract and should start earning rewards soon.
Eligible ETH Validators Take Advantage of Their Roles
Meanwhile, the 51,000 validators who have already joined the ETH 2.0 network are taking full advantage of their roles to actively progress the blockchain.
The network participation for validators proposing, attesting, and voting on blocks has stabilized between 96% and 98% over the past few weeks.
And now, a recent decision by the Office of the Comptroller of the Currency (OCC) has allowed banks and savings institutions to use public blockchains and stablecoins for payments.
The decision immediately led to a spike in the gas fees on the ETH network, which currently hosts the vast majority of the $30 billion stablecoin market.
For validators on ETH 2.0, the future is bright following the OCC decision, as demand for blockspace on Ethereum and the ETH token increases.