47.36 million ETH stake in the ETH2 Beacon deposit contract

Ethereum 2.0 participation has seen significant growth and a major milestone has been reached. As such, the deposit contract for staking Ethereum on the Beacon chain hit an all-time high of 47.36 million ETH this week.

Interestingly, this represents 33.9% of the entire supply of Ethereum.

ETH2 Staking Milestone

According to the data shared by the cryptoanalytical platform Santiment, this is a dramatic increase compared to two years ago, when it had only 10.9% of the supply, with more than three times its share.

“The ETH2 Beacon deposit contract, which is used to stake deposits for Ethereum 2.0, is now at an all-time high of 47.36 million ETH, which is good for 33.9% of the entire supply and more than triple from the 10.9% it had two years ago.”

Santiment also highlighted the redistribution of ETH in different portfolio levels. As such, wallets with more than 10 million ETH, representing the Beacon deposit contract, increased their share of the ETH supply by 23% in the past two years.

On the other hand, wallets in other wallet categories have declined, with 10,000+ ETH wallets (excluding the Beacon Deposit Contract) falling 5.3% and wallets with 10,000 ETH or less declining 17.7 % during the same period. This change indicated a growing stake in Ethereum 2.0.

Impact of growing participation in Ethereum staking

Despite the growing inclination towards gambling, the data suggests that both reward rates and inflation rates have unexpectedly declined.

The reward rate represents the annual percentage return for participating in ETH, similar to the interest earned for contributing to the security of the network. Meanwhile, the inflation rate measures the rate at which the total supply of ETH is growing, with new ETH minted as staking rewards contributing to the inflationary trend.

The lower reward rate implies that participants will receive less new ETH per staked token in the short term. However, the reduced inflation rate means that the global supply of ETH is expanding more slowly. This could benefit the value of ETH in the long run.

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