THE VILLAGE AT PROVIDENCE POINT
--> Annapolis Restaurant Week <-----
--> THE VILLAGE AT PROVIDENCE POINT APRIL APRIL APRIL<-----
--> THE VILLAGE AT PROVIDENCE POINT MAY MAY MAY<-----
--> <-----
--> Wes Adams For Anne Arundel Conty Circuit Court Judge <-----
“Herrmann
“Herrmann
Insert future code here--> 1-1 to 1-31 Anne Arundel County Stop Smoking <-----
STANDARD HERMAN AD--> Anne Arundel County Stop Smoking <-----
Herrmann 40--> “Herrmann <-----
MD Higher Education Commission Near Completer
Insert future code here
Orioles Bud april 2020 to Sept 2020
“Nationals October 2019

Ethereum 2.0 Smart Contract Reaches Milestone 5% Of Supply Locked

| August 06, 2021, 08:00 AM

The Ethereum 2.0 update that was long anticipated is well underway and nearing phase 1 which will introduce shard chains and other much-needed scaling solutions to the most important blockchain in the space today.

As part of the update, Ethereum holders can choose to lock up a minimum of 32 ETH within the ETH 2.0 smart contract to participate in the network as a validator node. At first, adoption was slow, but a milestone has since been reached. According to the latest data, the ETH 2.0 smart contract now contains more than 5% of the total ETH supply.

Here is what that substantial supply being locked up means for the cryptocurrency and the rest of the market.

The Critical Impact Of The Ethereum Blockchain On Crypto

While Bitcoin might arguably be more important to the financial landscape due to its potential reserve status and being the first and largest cryptocurrency in the market, Ethereum has undoubtedly been the most important as of late.

Without Bitcoin, Ethereum might not exist, but without Ethereum, more than half of all crypto assets would not exist. There would be no DeFi, no NFTs, and a distinct lack of foundation for innovation to occur.

These technologies have created brand new ways of transacting online, disrupting traditional banking services like lending and borrowing, and creating a new paradigm of digital ownership rights for media, music, art, and more. With all this going on, the future seems brighter than ever and it is thanks to the significance of the smart contract.

The Arc of Central Maryland

ETH Fees Spiral Out Of Control During Crypto Rally

As these technologies have blossomed, the Ethereum network has also begun to struggle with capacity and throughput. ETH gas fees skyrocketed during the peak of the most recent crypto bull run, to the point that various sidechains and alternative solutions were introduced and popularized.

Other blockchains began to pick up steam, and some developers began to create bridges from Ethereum to Binance Smart Chain and vice versa to relieve some of the pressure from the market. However, the pressure was released naturally through a major correction, which reduced the number of participants and overall network activity. Fees promptly fell back to normal ranges.

With things normal again, demand for these other platforms is at a standstill, which has allowed Ethereum to begin a strong recovery. Also assisting Ethereum with the recovery, is a major milestone within the ETH 2.0 smart contract, and the impact this has on supply and demand.

Ethereum 2.0 Smart Contract Reaches Milestone 5% Locked

The above outlines what happens when Ethereum demand is at its highest, which can get so overdramatic that it causes fees to go through the roof. But what happens in a situation where the throughput issue is solved, scalability is achieved, and the fees are a lot more acceptable?

Adding fuel to the potential fire that is brewing, is the fact that the Ethereum 2.0 smart contract has reached a milestone of 5% of the entire Ethereum supply. There is a supply of just under 117 million ETH, which means that the number of ETH staked is approaching 5 million and counting.

With such a substantial portion of the supply locked away, there is significantly less supply available that can be sold into the market or is available on exchanges. On-chain data shows that the supply shock in ETH is very real, and when the market realizes how little Ethereum there is left to go around due to these conditions, the price per ETH could go parabolic again.

Why A Flippening Of Bitcoin Is Still Unlikely

Because Ethereum has so much going for it and has outperformed Bitcoin since its inception, the bullish nature of the news has brought back the return of discussion around a potential “flippening.” A flippening happens when one cryptocurrency passes the other in the cryptocurrency market cap ranks, however, “the flippening” is in direct reference to Ethereum surpassing Bitcoin.

This is a narrative created by Ethereum supporters to combat Bitcoin maximalists. However, both sides will be proven wrong when both coins succeed and live together harmoniously. Bitcoin could act as a store of value, while Ethereum is more of a currency slash commodity that is used up as fuel to power transactions of all kinds across the blockchain.

Its many use cases could eventually spill over into Wall Street, allowing for the tokenization of stocks and other types of securities.

Ethereum Technical And Fundamental Analysis

From a technical standpoint, Ethereum has failed to retest its former all-time high at $1,400 so if any support is lost further, that could be the intended target. However, after such a significant selloff across crypto the correction could already be over, and with so much bullish news at the altcoin’s back, it could be back to bull market highs in no time.

Fundamentals also continue to show the supply shock escalating as more and more ETH leaves exchanges to be locked away in ETH 2.0, DeFi applications, or stored in cold storage wallets for the long term.

Buying up Ethereum is one way to profit from the emerging trend. To best take advantage of this once-in-a-lifetime opportunity, you need a platform to trade Ethereum with leverage. Look for a platform that offers the ability to buy ETH or other cryptocurrencies and then trade Ethereum CFDs using ETH-based margin accounts.

PrimeXBT, for example, offers BTC, ETH, and ERC-20 versions of USDT and USDC. An ERC-20 token is built to certain standards. More than half of the entire cryptocurrency industry exists on Ethereum as an ERC-20 token. Understanding this scale is the key to understanding the cryptocurrency’s potential in the long term.

Price predictions for the altcoin reach as high as $20,000 or more per coin and could follow in the footsteps of Bitcoin and its record 2017 rally. Could Ethereum really reach prices of $20,000 per ETH before the current bull cycle in crypto is over for good?

Liquified Creative Annapolis

Category: Local News, NEWS

About the Author - Stephanie Maris

Stefanie is a local blogger and social media content marketer from Maryland and most recently a wife and a mother. She has an unhealthy obsession with puns, sarcasm and caffeinated beverages.

Connect with the Author

rss feed