The Kraken crypto exchange, which processes over $1.5 billion in daily trading volume, has announced a major ETH milestone.
On Wednesday, the US-based firm announced that it now has over 250,000 users staking on the ETH 2.0 contract. Kraken revealed a month ago that it would automatically stake customer ETH in the new staking contract.
It now has almost $200 million in Ether staked via the exchange. Kraken quickly surpassed 100,000 ETH and has now moved past a quarter of a million.
ETH 2.0 Staking
Since the official launch, Ethereum users have been eager to start staking and contributing to the network’s overall security. To date, there are over two million ETH locked in the staking contract, representing more than $1.5 billion in value locked.
This allocation represents a medium-term investment, as ETH 2.0 users will not be able to access, withdraw, or trade their Ether until the next phase of launch.
That may take one to two more years. This, therefore, likely indicates that users who have staked their Ethereum, with a minimum requirement of 32 ETH, believe the network will continue to grow.
Although other exchanges have not stated their exact staking numbers, similar or larger-sized exchanges that offer the service are likely experiencing similar stats.
What is Version 2?
Ethereum 2.0 is an upgrade to the Ethereum network that fundamentally changes the protocol. This migration will be from a Proof-of-Work (PoW) validation mechanism to a Proof-of-Stake (PoS) method.
By switching validation methods, users who secure the network, known as miners, no longer need to dedicate electricity and computing power.
In the latest upgrade, users simply have to commit funds to the network and earn interest in return. This can either be in the form of a full validator node or as a pooled solution.
In theory, the upgrade will offer fundamental benefits like simplifying the block creation process. Users should also be able to interact with faster transactions and pay less in transaction fees.
With the growth in Decentralized Financial (DeFi) applications, a robust and inexpensive ecosystem is necessary for effective trading. As the Ethereum network continues to mature, will it become stronger and more efficient?
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