The cryptoverse is eagerly awaiting Ethereum's upgrade to the "Proof of Stake" consensus mechanism. And that’s a reason to want more ETH migration! Staking returns will increase.
According to US exchange Coinbase, ETH staking returns could double after the crypto moves from the consensus mechanism of proof-of-work (PoW) to proof-of-stake (PoS).
Recall that the Ethereum 2.0 or better said consensus layer will be implemented with the aim of improving the speed, efficiency and scalability of the Ethereum network so that it can process more transactions and eliminate congestion problems.
ETH Staking Would Be More and More Profitable
It should be understood that staking will be the backbone of the scalable version of Ethereum. The process of validating transactions on the network will no longer be based on computing power to solve a complex mathematical problem but rather with the quantity of ETH tokens put to the test. In the PoS consensus mechanism, it is considered that the more a user holds cryptocurrency tokens, the more network security becomes an important issue for the latter.
In a note to its investors, Coinbase reported that the mere fact that Ethereum will move from “Proof of Work” to “Proof of Stake” will drive up staking returns. The exchange estimates that returns will drop from (4.3% to 5.4%) current level to (9-12%) after the migration. “Which therefore will increase investor interest in cryptocurrency,” adds Coinbase.
Already Over 9 Million Tokens Locked In Ethereum 2.0 Contract
The number of ethers locked in the Ethereum 2.0 contract currently stands at 9.6 million tokens or 27.09 billion US dollars at the current price of ETH. According to data by Etherscan, the amount of blocked ethers has grown by more than 25% compared to the starting amount of the ETH 2.0 contract
The increase in the number of tokens in this contract clearly shows the interest of investors in the update. Especially since the amount required to join the pool of ETH 2.0 validators is 32 ETH, or an amount of $88,000 at the time of writing this article.
Among other things, Ethereum has seen a nice rise after yesterday's fall in early trading. The price of Ethereum had plunged to $2300. But, at the end of the session, it will recover with an increase of 10.05% and then extend the rise during this session. Currently, Ethereum is trading at $2805, an increase of 21.95% from yesterday’s low.
Will this new breakthrough allow the second cryptocurrency to go back above $3000?