Total value locked in Ethereum 2.0 contracts exceeded $23 million

The accumulation of funds is taking place as “The Merge” upgrade approaches, after which Ethereum will switch to PoS

06.06.2022 - 08:00

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What’s new? According to analytics service Glassnode, the total amount of TVL in Ethereum 2.0 smart contracts reached 12 351 ETH ($23,33 million at the Binance exchange rate as of June 6). In the last 30 days alone, 19 800 new validators have joined the network. The total amount of ETH in staking is 10,73% of the circulating token supply.

Statistics on the Glassnode website

TVL (Total Value Locked) is the total amount of funds locked in smart contracts and providing liquidity. The figure shows how much investors have invested in a particular project, pool, or the field of decentralized finance as a whole at the current time.

What is Ethereum 2.0? It is a major upgrade to the network, preparations for which began back in December 2020. The main goal of Ethereum 2.0 is to change the consensus algorithm from Proof-of-Work (PoW) to Proof-of-Stake (PoS). For more details about the upgrade and how miners will be able to earn in the changed conditions, see GetBlock Magazine’s article.

On May 30, Ethereum developer Tim Beiko reported that the team would be conducting a blockchain merge on the PoW and PoS of the Ropsten test network. He added that the release of “The Merge” update, after which Ethereum would switch to PoS, is expected around June 8. Other testnets, such as Rinkeby and Kovan, would be able to be supported and upgraded by the community, but would no longer be controlled by app developers.

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