A developer on Crypto Twitter has showcased analytics from Glassnode, which reveals that the number of addresses with 32 Ether still increases. However, Elias Simos has also discovered that the number one altcoin also leaves cryptocurrency exchanges. It is highly possible that whales plan to use their existing assets for staking, rather than trading.
Glassnode, an on-chain analytics firm, offers a wide variety of crypto-related statistics. These include data for wallet addresses that contain 32 Ether and the ETH balance on all exchanges. While viewing these data points, Bison Trails developer Elias Simos discovered a divergence in ETH movement.
On one hand, 32 Ether addresses are still increasing, especially now that Ethereum 2.0 is closer than ever. Data shows that there is an uptrend of +5% 32 Ether addresses per month. Normally, the supply of ETH found in smart contracts is decreasing.
However, Simos has also discovered another interesting piece of information. Glassnode shows that ETH consistently left cryptocurrency exchanges at a rate of -15% in Q3 and Q4. If whales have anticipated Ethereum 2.0 to launch later this year, it is highly likely that they decided to preemptively transfer their assets. After all, a high number of token transfers is more likely to be attributed to whales, rather than the entire crypto community.
According to the developer, the new information means that the new network upgrade is gaining traction. However, the coins are transferred at the expense of other platforms. Simos also believes that this is a reallocation of capital, rather than new money flowing into cryptocurrencies.
Ethereum 2.0 on road for December, full launch may take longer
As Defiye previously reported, the Ethereum 2.0 deposit contract went live on November 4. The address gained a massive amount of ETH, although there are still no staking options online. At the time of writing, the deposit contract holds 50,689 ETH in total. For it to launch the Ethereum 2.0 genesis block, the contract must reach more than 500k ETH. Co-founder Vitalik Buterin has shown his faith in the product launch by contributing 3,200 ETH.
The first stage of Ethereum 2.0, Phase 0, will launch in December 2020. Within Phase 0, developers will launch a deposit contract and a beacon chain. The contract will collect all the ETH necessary to launch the network’s genesis block. On the other hand, the beacon chain will track all validators who have deposited their ETH into the new network. As a reminder, users must own at least 32 ETH to stake in the new PoS network.
Ethereum 2.0 will fix a majority of the issues that users currently experience, including fees and slow transactions. The blockchain trilemma proposes that developers can offer only two features at the expense of the third one. Practically, a blockchain platform can only stay decentralized and secure, but it cannot be scalable.
The new network upgrade will finally solve the issue by introducing all three primary blockchain features. However, it will take a while until Ethereum developers fully implement the entirety of the network. At the time of writing, there is no official release date for the new network .However, experts believe that ETH 2.0 will most likely launch in December 2021 and entirely replace the old network.