Tuesday, February 27

How much did Ethereum 2.0 staking grow in 2021?

On December 1 of this year, the Ethereum 2.0 Beacon Chain celebrated the first anniversary since its activation. Despite not being fully operational, due to delays in its development and final implementation, the network has shown high levels of growth in the number of validators that are currently working.

Block explorer data Beaconcha.in, reveal growth of more than 1,000% in the number of validators operating on the network. At the time of the start-up of the Beacon Chain, this it had just over 21,000 validators. Currently, this figure exceeds 270 thousand, representing an increase of more than 1,100%.

The curve has remained in constant growth, this awaiting a definitive date
of the activation of Ethereum 2.0. Source: Beaconcha.in.

To become an Ethereum 2.0 validator, since it works with the Proof of Work (PoS) protocol, it is necessary to “stall” or block a certain amount of ETH (32, to be precise). With the increase in the number of validators, the graph of the amount of blocked ETH has had a practically similar behavior.

The graphs of the number of validators and ETH blocked are very similar. Source: Beaconchain.in.

In this case, the amount of blocked ETH went from 670 thousand to more than 8 million. It means, like the number of validators, a growth above 1,100%. All this before the network is active. Such a blocked amount represents 7.3% of the total ETH in circulation.

When will Ethereum 2.0 go live?

For now there is no definitive date for the activation of Ethereum 2.0. Vitalik Buterin, co-creator of Ethereum, and main promoter of the creation of ETH 2, recently published a roadmap under the name End Game (End of the game) in which the final path is indicated to migrate from proof of work (PoW) to proof of stake (PoS).

However, the end of the road does not seem to be 2022. According to an image published by Vitalik himself, which shows the progress on the development of the different modules that will give life to Ethereum 2.0, many of these have not reached as even 50% of its completion. This could mean a delay of another year for the update, leaving 2023 as a possible year to see Ethereum 2.0 up and running.

Although Ethereum 2.0 is showing delay, there have already been several advances that have been presented. So far, the first technical specifications are available that will allow us to Fusion (also known by its English name, «The Merge«), Known stage in which both Ethereum 1.0 with PoW and Ethereum 2.0 with PoS will coexist, this while the final transition is being completed.