Ethereum 2.0 Testnet Reached Almost 2 Million ETH Staked
Ethereum (ETH) 2.0 is the upgrade to the decentralized ETH blockchain that has been in development for more than four years. Now, in a data from testnet block explorer beachoncha.in, over 60,000 validator nodes have been activated on the ETH2 Medalla testnet. And they have collectively staked almost 2 million testnet ETH – called Görli ETH.
So, it shows a substantial appetite among Ethereum users for the upcoming proof-of-stake network’s anticipated rewards.
ETH2 vowed to dramatically boost ETH’s transaction processing capacity – from approximately 15 per second today to over 100,000.
Ethereum made transaction fees skyrocket during the time of heavy use. As a result, it priced out many users unwilling or unable to pay $10 or more for every transaction.
Currently, Ethereum and Bitcoin blockchains use the same method or consensus mechanism to end with an agreement on how to produce blocks – that’s proof-of-work consensus where specialized mining hardware processes mathematical calculations to unlock the following block in the chain.
Aside from that, one of Ethereum 2.0’s most important changes would be shifting the network to proof-of-stake consensus. Here, a network of validators stakes ETH to vouch for a specific block to become part of the chain.
In case a validator node vouches for a block that the collective network considered invalid – either by mistake or while trying to send malicious transactions -, the node’s Ethereum stake might become ‘slashed.’ And this is to discourage bad blocks from propagating.
Contrarily, validators get rewards for vouching for or attesting blocks accepted by the overall network. Staking rewards varies on different factors. However, they have developed calculators to pencil out possible earnings.
Aside from the Medalla testnet, they are also spinning up one final short-term testnet codenamed Spadina. It aims to offer early Ethereum 2.0 validators and developers a dress rehearsal for the genesis launch of ETH2.
Spadina would only operate for three days as node operators deposit testnet ETH. Also, this intended to smooth the transition to fuel up Ethereum 2.0 nodes successfully.
People expect ETH2 to launch in November 2020. But the official launch is just the first phase of a staged rollout potentially extending as far as 2022.
As the staking rewards are on the horizon and the chance to be a part of the future Ethereum, the increasing community of validators ready to power the network has a lot of reasons to feel excited.
The DeFi Hype
Elsewhere, in the past several months, DeFi protocols such as Yearn.Finance, Compound, Synthetix, and Chainlink have their prices go over the roof, making noises that the long-awaited bull market might arrive.
The DeFi is built on Ethereum and propelled ETH’s price increase from $100 in March to $470 in August.
But the DeFi euphoria has been fading out in recent weeks, and there is mounting bearishness in the rest of the market too. During the last couple of weeks, the Ethereum price has been hovering at about $350.
Based on CoinMetrics, 72% of the top 250 crypto assets have fallen in price over the week. The said number boosted to 93% for the month over month analysis. Then, in Messari’s DeFi chart, across September, many DeFi tokens corrected by anywhere between 12% to 85%, with bZx Network losing 85%, Curve declining 78%, Swerve -76%, Balancer -53%, THORChain -52%, Synthetix -34%, and AAVE -29%.
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