The Eth2 Deposit Contract is Fully Funded, ETH Price Soars Above $600
A lull observed in the first half of this month was replaced by activity as prospective Eth2 Beacon Chain mainnet validators accelerated their ETH depositing. While there were doubts about a timely launch, the Eth2 deposit contract is now fully funded as Etherscan statistics show. 524,288 ETH needed to be staked by 16,384 validators in exchange for over 22% APR and slashed penalties.
The Ethereum price is pumping for several reasons. Apart from the upside pressure of DeFi, Eth2 is a major fundamental event being watched by traders. The timely activation of Eth2 Beacon Chain mainnet is also a big deal. Launch conditions have been met on time, Phase 0 will undoubtedly go live on Dec 1. It officially signals the beginning of a transformation for Ethereum culminating in the switching off of the Proof-of-Work consensus algorithm and better scaling solutions further enhancing the network, cementing its position as a preferred smart contracting platform.
Impact on the ETH Price:
Bullish. Beyond scaling, a Proof-of-Stake system is reliant on the native token’s price for security. There are other mitigating systems in place like slashing in case of threats but the ETH price is on focus. For this, a repricing to $800 and beyond could be on the cards for ETH bulls.
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