Ethereum 2.0 staking contract is a kind of blockchain smart contract which enables users to lock their Ethereum (ETH) investments and be an authenticator on the proof of the stake network. Ethereum 2.0 stake rewards the inventors for this. However, the Ethereum 2.0 weekly deposits have hit a new low recently, thus, pushing the launch date of ETH 2.0 further. It is estimated that the reason for such a slump is the crashing prices of ETH itself.
Ethereum 2.0 Weekly Deposits Plunge
The contract guidelines mention that a user has to deposit a minimum of 32 ETH tokens on the contract to acquire a stake in the network. There are Ethereum staking lockup pools to ease the matter as multiple users can join in and acquire a single stake that would then be divided into them. Therefore, once ETH crashed, a lot of investors joined the sell-off session, which can be considered a reason for slumping Ethereum 2.0 weekly deposits.
In the past two years, investors found ETH 2.0 upgrade to be very promising and this is why the weekly average of 32 ETH deposits amounted to around 500 to 1000 per day. The chart provided above highlights that on September 11, 2021, (chosen due to the middle positioning) recorded a 32 ETH deposit of 1022.14, which is considered to be fairly decent.
However, the scenario has completely changed now as on July 3, 2022, the deposit was about 122. The subsequent deposits for the week lowered as well. The prime highlight was 98.28 deposits on July 9, 2022. The next day it rose to about 118, which is not that significant considering the older statistics. The week’s opening was the lowest ever recorded metric for ETH 2.0 until the entire week pulled off the same trend.
The one thing that provides relief to ETH enthusiasts is that the total value staked on the Ethereum upgrade has still been increasing. The total ETH staked chart shows that the figure stood at 13,0221,893 on July 11, 2022, and has almost doubled since October 20, 2021, when the recorded metric was 7,993,346. However, the decreasing Ethereum 2.0 weekly deposits might result in a slower pace of any additions in the total value staked.
In addition to declining weekly deposits, the supply in profit for ETH 2.0 has also been seeing a downtrend since the beginning of last year. This is because a major section of the supply in profit currently, was deposited at the beginning of 2021 or even before that when ETH prices were below $1,000 (the trend it is nearing again). About 83% of the supply is still ‘underwater’ and this might have induced the staggering ETH 2.0 weekly deposits. All these factors are working against the possibility of Ethereum 2.0 becoming a reality.
Ethereum Price Today
Ethereum (ETH), the second-largest cryptocurrency, has been lowering to the point it was at about 2 years ago, that is, below $1,000. The ETH price has dropped over 77% since its all-time high of $4891.70. At the time of writing, the ETH price was at $1.085.17, down by 5.03%. The market capitalization of the coin stood at $131.85 billion, dropping by 4.98%. However, the 24-hour trading volume gained slightly by 6.23% and stood at $11.75 billion.
Earlier on July 8, 2022, the token spiked over $1,250 in an attempt of recovering from the repeated crypto market crash sessions. However, after the initial ‘green’ movement at the time, the Ethereum prices slipped further. The CoinMarketCap data shows that the second-largest crypto has decreased 6.70% in value in the last 7-days. The above-mentioned chart shows how the rising price action changed its course. Further, the coin slipped from $1,142 to $1,095 in a matter of three hours today. The Ethereum price prediction ratings by analysts have been lowered to $1,500, which the token is expected to hit by the end of 2022.
However, these experts have a bullish outlook for the same in the long run as they estimate it to reach $10,000 by 2025. Moreover, the investors also believe in holding the cryptocurrency rather than selling it off as they expect something ‘big’ to happen soon. On the other hand, the drop in Ethereum 2.0 weekly deposits is surely a blow to people who support both these ETH versions.