Almost $ 45 billion or 20 % of the Ethereum in circulation were used: a milestone for cryptocurrency that focuses on the staking system

Von Krypto News Österreich

Artikelinhalt: Der Einsatz von Ethereum hat einen Meilenstein erreicht, da knapp 45 Milliarden US-Dollar oder 20% des im Umlauf befindlichen Ethereums eingesetzt wurden. Dieser Erfolg spiegelt den Fortschritt von Ethereum auf dem Weg zu einem umweltfreundlicheren Konsensmodell wider. Ethereum ist eine von vielen Blockchains, die das Proof-of-Stake-Konsensmodell verwenden. Bei diesem Modell verpfänden Validatoren mindestens 32 Ethereum, um Transaktionen zu validieren und Belohnungen zu erhalten. Es war nicht immer so. Im September letzten Jahres wechselte Ethereum vom energieintensiven Proof-of-Work zum Proof-of-Stake-Konsensmodell. Monatelang war es nicht möglich, abgestecktes Ethereum abzuheben, bis ein Upgrade im April 2021 dies ermöglichte. Vor diesem Upgrade waren …
Article content: The use of Ethereum has reached a milestone because almost $ 45 billion or 20% of the Ethereum in circulation was used. This success reflects Ethereum's progress on the way to a more environmentally friendly consensus model. Ethereum is one of many blockchains that use the proof-of-stake consensus model. In this model, validators pledge at least 32 Ethereum to validate transactions and maintain rewards. It wasn't always like that. In September last year, Ethereum switched from the energy-intensive proof-of-work to the proof-of-stake consensus model. For months it was not possible to withdraw the dashed Ethereum until an upgrade made it possible in April 2021. Before this upgrade were ... (Symbolbild/KNAT)

Article content:

The use of Ethereum has reached a milestone because almost $ 45 billion or 20% of the Ethereum in circulation was used. This success reflects Ethereum's progress on the way to a more environmentally friendly consensus model. Ethereum is one of many blockchains that use the proof-of-stake consensus model. In this model, validators pledge at least 32 Ethereum to validate transactions and receive rewards.

It wasn't always like that. In September last year, Ethereum switched from the energy-intensive proof-of-work to the proof-of-stake consensus model. For months it was not possible to withdraw the dashed Ethereum until an upgrade made it possible in April 2021. Before this upgrade, Ethereum worth around $ 29 billion were promised to withdraw operations.

Risk capital providers and cryptoanalyst Adam Cochran describes the milestone as a remarkable success and emphasizes the importance of coordinating economic incentives with security goals for a decentralized network. Ethereum's success shows that an environmentally friendly consensus model is possible.

In terms of use of Ethereum, Lido Finance is the most popular liquid user protocol. Users can use ETH at any height and receive the stuck Ethereum token "Steth". According to Dune Analytics, Steth accounts for almost 32% of all stacked Ethereum.

Cryptocurrency exchanges also play a major role in the use of Ethereum. Coinbase, octopus, Binance and OKX together make up about 19% of all the Ethereum used. In a bear market in which the trading volume goes back, staking offers the stock exchanges an alternative source of income.

However, the supervisory authorities in the United States have expressed concerns about pilot services and claim that they violate securities laws. This year, octopuses and coin base were under regulatory pressure. Kraken enclosed a legal dispute in February, while the legal dispute against Coinbase has not yet been completed.

In Canada, financial institutions have shown interest in stiling and examining how they can improve their products. The digital asset manager 3IQ recently announced that two of his Exchange Traded Funds (ETFs) will offer staking from August.

It remains to be seen how the use of Ethereum will develop in the future. Nevertheless, the current milestone shows that Ethereum is on the right track to further improve its consensus model and become more environmentally friendly at the same time.