On the 30th of May, Mr. Whale notified his Twitter followers of the amount of ETH staked in the PoS chain. More than 10% of Ethereum’s total supply has been staked in ETH 2.0. This has raised concerns for a few Ethereum investors.
In addition to the stat provided, Mr. Whale went further to probe his followers about the fate of ETH when the staked tokens are finally unlocked. As expected, some of his followers respond to the Tweet with pessimism, affirming that a huge dump may be underway.
Ethereum currently has a total supply of 120 million tokens, and over 12 million of these are staked for the ETH consensus upgrade. Notably, though, the Ethereum team has revealed several details regarding the launch of ETH 2.0 and what community members can expect.
The Migration from PoW to PoS
The network upgrade has been ongoing for over three years now. The Beacon chain went live in 2020, and the EIP-1559 was implemented the following year. Interestingly, another upgrade is set to take place in the coming days – The Ropsten Merge.
The overall goal of the network’s upgrade is to scale the blockchain, making transactions faster and cheaper. All the individual upgrades have played their role in making the network achieve this goal. So far, despite the fact that the upgrade has taken too long to be finalized, the founders have been transparent and investors, stakers and miners know what to expect.
The Ethereum team also revealed that the staked Ether tokens will be released in batches. This will prevent holders from selling off simultaneously. Additionally, holders of Ethereum who have staked their precious assets for years will likely not sell off their ETH immediately after it is released. Bitcoin and Ethereum are two of the leading cryptocurrencies, and both assets boast loyal holders.
From a fundamental perspective, many ETH investors see the potential of the token to reach and cross the $10,000 mark in the coming years. Until that goal is reached, many investors will be unwilling to sell off.