New Record for the Total Value Locked in Ethereum 2.0 Amid ETH Supply on Exchanges Shrinking

Good news for the Ethereum 2.0 deposit contract as it will encounter an increase in investments due to the rise in the total value locked (TVL). This is also supported by Glassnode, a crypto analytic firm, confirming that the total value in the ETH 2.0 deposit contract achieved an all-time high of 7,824,674 ETH.

There was a previous talk regarding the Ethereum 2.0 upgrade. One of the people involved there was Lark Davis, a market analyst, who predicted a 90% day-to-day emission reduction from 12,800 to 1,280 resulting from the Ethereum 2.0 upgrade. Up to now, there were different upgrades for Etherium, in order to make the digital assets even more efficient. The most recent of these upgrades is the London Hardfork or EIP 1559, the one that stimulated deflationary block on the Ethereum system, something that did not see the light of day before August 5.

Ethereum Supply on Exchanges Reduces

Santiment, the go-to platform to analyze crypto markets, identifies a gradual reduction of price on Ether’s supply on exchanges. Crypto-traders have also shifted their attention to pumping and volatile coins, which proves to be beneficial for Ethereum in the long run, conclude Santiment.

Prices are likely to rise, as this presents an example of a holding culture. Similarly, as ETH supply on exchanges shrinks, prices will probably increase.

At the same time, the Ethereum network is highly attractive to the people who are in it for short-term trading. IntoTheBlock gives a more complete picture of this, supporting the idea that a rekindled attraction of short-term traders resulted in the price of ETH surpassing $3,000. Experts from this data analytic firm explain that the ETH addresses within a month have risen by 43% from July, rapidly getting to the all-time high that took place in May. More precisely, 3.87m addresses with a volume of 19.44m ETH.

Something else worth mentioning is the increased number of unique tokens joining the Ethereum network, otherwise recognized as token circulation. There is a strong connection between token circulation and price.

Beacon Chain, or the Ethereum 2.0 upgrade, was released in the last month of 2020, considered to make the ultimate transit from the PoW consensus mechanism to a PoS framework.

The POS framework helps the confirmation of blocks to be more energy-efficient and asks validators to lock up Ether instead of trying to decipher any cryptographic puzzle. Consequently, the PoS is more eco-friendly and costs less. Scalability through sharding is another promise expected from Ethereum 2.0.

Also read: Ethereum Price Prediction 2021 and Beyond – Can ETH Reach $20,000 in 2021?

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