As Ethereum’s transition to proof-of-stake (PoS) gets closer and the network’s hashrate taps another all-time high, the Ethereum 2.0 contract is close to nearing 13 million ether worth $22.6 billion using today’s ether exchange rates. Moreover, according to a decentralized finance (defi) educator, the $22.6 billion worth of ethereum that continues to grow won’t be unlocked until another upgrade is enforced following The Merge.
Ethereum 2.0 Contract Nears 13 Million Ether Locked — Defi Educator Says The Merge Won’t Be a Negative Price Catalyst
On June 4, 2022, etherscan.io’s webpage that hosts the Ethereum 2.0 contract, indicates that there’s 12,785,941 ether locked into the contract. The Ethereum 2.0 contract holds the funds for a great number of ETH validators as it takes 32 ETH to become a validator. Every single day, a decent quantity of validators lock funds in the contract and the current value locked in the contract is worth $22.6 billion using today’s ether exchange rates. During the last 24 hours, well over two dozen deposits of 32 ether ($56,684) have been added to the contract.
The $22.6 billion in ETH is locked and not liquid and may not be for quite some time. This means once the 32 ETH is deposited, the funds will remain locked up until plans are coordinated after the PoS transition. Just recently, the decentralized finance (defi) educator Korpi published a thread about the assumption that the 12.7 million ether will immediately be unlocked and dumped after The Merge.
“I’ve noticed some people consider The Merge as a negative price catalyst due to a supposed huge [ethereum] unlock — This is wrong,” Korpi explained on Twitter. “Staked [ethereum] won’t be unlocked at The Merge. The Merge won’t enable withdrawals. This is planned for another Ethereum upgrade which may take place 6-12 months after The Merge. In other words, both staked [ethereum] and staking rewards will not enter the circulation for a long…
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