As Ethereum nears the end of its Proof-of-Work (POW) to Proof-of-Stake network transition, more ether is being removed from circulation (PoS).
The total coins placed in the Ethereum 2.0 Contract have reached a new milestone of 8.854 million ETH, valued around $33.3 billion at current prices, according to Glassnode, an on-chain analytics startup.
According to a CryptoQuant chart, the value of the digital assets invested in the deposit contract has steadily increased from the debut of Beacon Chain in December 2020.
The Ethereum Network proposed upgrade to ETH 2.0 (“Serenity”), will increase the network’s speed, efficiency, and scalability.
This will propel Ethereum to new heights, as it will be able to significantly boost transactions while also reducing network congestion and high gas prices.
Ethereum will achieve its goals of being a transparent and open network for decentralised apps and finance (DeFi) once it reaches the final phase of the upgrade, nicknamed “phase 2.”
Scalability is one of the difficulties that the Ethereum blockchain faces. As the network is used by more and more decentralised apps and services, and transactions grow rapidly, the gas fees rise tremendously.
The rising deployment of Layer-2 scaling solutions and migration of users to other Layer-1 blockchains demonstrates users’ strong desire to address scaling difficulties on the Ethereum network.
According to the Ethereum foundation, the proof of stake (PoS) consensus mechanism will boost the network’s efficiency by two thousand times while also reducing total energy use by 99.95 percent.