As the Ethereum Shanghai upgrade looms, the amount of Ethereum staked on the Beacon Chain has reached an astonishing $34.2 billion, accounting for roughly 14.95% of the total Ethereum supply. According to OKLink’s tally, the amount of staked Ethereum is approximately 18,006,600 ETH.

The Ethereum network underwent a transition from proof-of-work (PoW) to proof-of-stake (PoS) in September of 2022, enabling users to become validators by staking 32 ETH. Currently, there are 564,239 validators on the network. Staking on the Beacon Chain comes with a 3.74% annual rate of return (APR).

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Lido leads the way among various projects staking Ethereum, with 31.43% of staked Ethereum amounting to 5.65 million ETH. Coinbase is a close second, with 12.62% of staked Ethereum, or around 2.27 million ETH. Kraken is in third place, with 6.93% of staked Ethereum, or 1.24 million ETH.

As the Shanghai upgrade approaches, the deposited funds will be available for withdrawal. The upgrade is expected to deliver significant improvements to the Ethereum network, such as an increase in transaction throughput and lower gas fees.

However, data by Santiment indicates that the ten largest exchange addresses are approaching all-time low levels, while the ten largest non-exchange addresses continue to climb. The disparity is particularly concerning given the current market situation, and it remains to be seen what it means for the Ethereum network in the long run.

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The high amount of Ethereum staked on the Beacon Chain indicates a strong level of confidence in the Ethereum network and its transition to PoS. The popularity of staking is also rising, allowing users to earn rewards by contributing to network security.

Overall, the Ethereum Shanghai upgrade is expected to bring significant improvements to the network, and the high amount of staked Ethereum on the Beacon Chain highlights the community’s commitment to the network’s success. However, the apparent disparity between exchange and non-exchange addresses suggests that there may be some challenges to overcome in the coming days.

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This article was republished from azcoinnews.com

What is #Beacon #Chain ?

Beacon Chain is a fundamental component of the #Ethereum 2.0 upgrade, also known as Ethereum Serenity. It serves as the backbone of the new Ethereum network, providing crucial functions that enable the system to scale and become more efficient.

In simple terms, Beacon Chain is a blockchain that coordinates and manages the Ethereum 2.0 network. It acts as a central hub for validators, who are responsible for validating transactions and securing the network. Validators are required to lock up a certain amount of Ether as collateral to participate in the consensus process.

One of the key features of Beacon Chain is its use of a new consensus algorithm called Proof of Stake (PoS). Unlike the current Ethereum network, which uses Proof of Work (PoW) to validate transactions, Beacon Chain uses PoS to achieve consensus. This means that validators are chosen to create new blocks and validate transactions based on the amount of Ether they have staked, as well as their reputation within the network.

Beacon Chain also introduces shard chains, which are additional chains that run in parallel to the main Ethereum chain. These shard chains help to increase the scalability of the network by allowing multiple transactions to be processed simultaneously.

In addition to its role in managing validators and shard chains, Beacon Chain also handles other important tasks such as managing network upgrades, maintaining the network's health, and organizing the Ethereum 2.0 roadmap.

Overall, Beacon Chain is a critical component of the Ethereum 2.0 upgrade, providing the infrastructure and functionality needed for Ethereum to scale and become more efficient. Its introduction marks a significant step forward in the evolution of the Ethereum network, bringing improved scalability, security, and sustainability to the world of decentralized finance and applications.