The participation contract for the Ethereum 2.0 blockchain network is now the largest holder of Ether (ETH).
According to blockchain analytics provider Nansen, Eth2 participation contract has overtaken Wrapped Ethereum (wETH) to become the largest ETH holder. Unlike Ether, Wrapped Ether adheres to the ERC-20 standard, making it the preferred representation of ETH among decentralized finance protocols that use ERC-20 tokens.
The findings were posted on Twitter by Alex Svanevik, CEO of blockchain analytics company Nansen, on Tuesday. Data shows Beacon Chain’s deposit contract has 6.73 million ETH, for an approximate value of $ 21.5 billion at current prices.
Conversely, Nansen data suggests that the Wrapped Ethereum contract has 6.7 million ETH ($ 21.4 billion), followed by Binance with 2.29 million ETH ($ 7.3 billion).
Check who’s # 1 ETH holder now guys! pic.twitter.com/3isDLkrv7I
– Alex Svanevik ✨ (@ASvanevik) August 16, 2021
“Look who’s the # 1 holder of ETH now guys!”
The amount of Ether locked and staked on Eth2 currently represents 5.7% of Ethereum’s circulating supply, according to CoinMarketCap. There are now 210,000 validators for the Eth2 network, according to Beaconcha.in.
Currently, the amount of Ether staked on Eth2 is locked and cannot be withdrawn from the contract until the next Ethereum chain merger., which will merge the Ethereum and Eth2 networks. Currently, the chain’s merger is expected to take place during the first half of 2022.
According to Staking Rewards, Eth2 is currently the third largest proof-of-stake network by capitalization in staking, and it ranks behind Cardano’s $ 49 billion and Solana’s $ 27.5 billion.
The news comes shortly after a major milestone on the Ethereum roadmap, Eth2, as the network successfully rolled out its ‘London’ updates on August 5th.
The hard fork contained the highly anticipated Ethereum 1559 upgrade proposal, which introduced a base transaction fee that burns off the offer on the Ethereum fee market.
According to Ultrasound.Money, 54,916 ETH worth $ 175 million have been destroyed through transaction fees in the dozen days since London started operations. At a current burning rate of 3.28 ETH, more than 140,000 ETH could be burned each month if network activity remains constant.
At the time of writing this article, ETH prices had retreated 3.3% in the last 24 hours to trade at $ 3,180.