The number of Eth2 validators recently reached 66K following an inconsistent rise over several weeks. Ethereum 2.0 recently recorded 2.25 million ETH deposited in its contract address. The numbers show investors have gained significant faith in the anticipated ETH2 rollout.
Smart Contracts experts Dune Analytics have recorded above 2.5 million ETH deposited on the ETH2.0 contract. According to the analysis, the highest number of unique ETH2.0 depositors over time stands at 4,866.
Since the launch of the Beacon chain, the number of Ethereum 2.0 validators has been rising. The Eth2 Beacon Chain is facilitating the transition of Ethereum from a Proof-of-Work to a Proof-of-Stake mechanism.
The Ups and Downs
In recent times, the price of ether has been falling as crypto investors saw a forgettable week. However, the terrible spell has not shadowed the increase in the number of validators on the Ethereum 2.0 network. The network’s beacon chain has a 98% participation, which also shows that the network is doing quite well.
Danny Ryan, a famous researcher, shed light on how Eth2 progressed last year and predicted how it would fare in 2021. According to Ryan, the beacon chain will create a connection between ETH1 and ETH2. However, he says the network will concentrate more on development and research. The time will also allow upgrades to be assessed and refined.
Ryan continued to say the second half will focus on implementing shard chains, succeeding Phase 0 of the Eth2 rollout. He also stated that the move would increase network transaction capacity, subsequently boosting its ability to scale.
Nonetheless, the researcher said the L2 scaling wouldn’t necessarily help Ethereum satisfy the global population’s demands. “Ethereum will continue to see demand outstrip supply as global adoption continues,” he said while further praising the steps Ethereum is taking to cope with demand.
The Correlation Between ETH and Ethereum 2.0
In late 2020, Phase 0 of Eth2 was launched as more than 580,000 ETH was staked in the deposit contract. Investors then inquired what will happen to their ETH after getting transferred to the Ethereum 2.0 network. The Beacon Chain was then unveiled to create a connection between the ETH old blockchain to the new ETH2 epochs.
The beacon chain makes the transfer by adding a layer on the already mined ETH blockchain for it to be included in Ethereum 2.0 network. The only change during the transfer will be the crypto valuation since the mechanism changes from PoW to PoS.