Ethereum (ETH) total value locked in the Ethereum 2 (ETH 2.0) smart contract has hit a new all-time high, on-chain data shows.
Ethereum, the largest smart contracts blockchain platform in the world today, launched as a PoW network, and like Bitcoin (BTC), relies on mining for transaction processing and network security.
Ethereum 2 is a network upgrade that aims to move the network from PoW to PoS – the target being improved scalability and network security. The deposit contract on the Beacon Chain was launched in November 2020 and allows ETH holders to lock their assets ahead of the switch, with forecasts that the upgrade could have an impact on the price of ETH.
Per Glassnode, the total value in the contract has hit an ATH of 13,152,149, another milestone above 13 million staked ETH as the transition from proof-of-work (PoW) to proof-of-stake (PoS) draws closer.
$20 billion worth of value in ETH 2.0 deposits
The amount of ETH deposits into the ETH 2.0 deposit contract continued to rise steadily even as the price of the token fell off after peaking around $4,800 in November 2021. From that top to when ETH/USD touched lows of $2,000 in mid-May this year, ETH 2.0 deposits rose from around 8.1 million to 12.5 million.
Further price weakness however saw a lull in the amount of ETH sent to the Beacon chain smart contract, with Ethereum’s dip below $1,000 leaving most of the staked cryptocurrency in loss. But with the merge timeline now set for early Q3, positivity is high with 13.1 million in staked ETH 2.0 representing more than 10% of the circulating supply.
Currently, with Ethereum price around $1,525, the total value of ether deposits into the staking contract ahead of the 16 September “merge” date is worth over $20 billion.