Recent data reports show that ETH2 rose quickly on the ranks, now sitting as the third-largest network today by staked capitalization, all thanks to the ongoing surging price of Ether (ETH). At present, about 2.6 million ETH is within ETH2 – putting its staked capitalization at about $3.7 billion in total. However, what most felt impressed about is the fact that ETH2 is already surpassing expectations despite only having locked up 2.1% of Ethereum’s total supply.
ETH2 deposits have steadily grown since its beacon chain genesis release just a mere two months prior. According to the reports, about 1 million ETH was locked up within the network for staking purposes this past January alone. Furthermore, its validators’ total number also grew tremendously, from 49,200 the past year to an impressive 76,300.
Seeing as there is still more than enough room for more ETH to flow in within the network, and as its market prices continue to rise above even the loftiest of expectations, we shouldn’t be surprised if ETH2 surge atop the ranks sooner rather than later.
ETH’s continual rise is also responsible for pushing DeFi past $30 billion TVL
As per the latest aggregated data from the always-reliable DeFi Pulse, the total value locked (TVL) within DeFi protocols has now surpassed the $30 billion mark. It is worth noting that the sector managed to reach this milestone less than a year when it first crossed the $1 billion mark – notably growing about 2,700% since June 2020, which was famously branded as the “Summer of DeFi.”
Although most will see the outrageous growth in users as the primary reason for DeFi to reach such a breakthrough, experts believe that the continual rise in the market price of the most popular cryptos today, namely BTC and ETH, should be the main matter of discussion. They are pointing out that both BTC and ETH rose meteorically in parallel with DeFi’s TVL, going up by 264% and 545%, respectively.
Crunching the numbers, one may see that the total number of locked up tokens for both cryptos within DeFi are actually lesser than the recorded all-time highs. This means that DeFi is exceeding all of its record-highs not because it is taking in more BTC and ETH, but because both cryptos are doing extremely well in the market as of date.