|

Ethereum's Vitalik Buterin vows to meet ETH 2.0 deadline as roughly 20% of the goal has been reached

  • Ethereum 2.0 staking is behind the schedule with less than 20% of the goal reached.
  • Vitalik Buterin reassures the community, promises to slash the minimal deposit if needed.

Currently, the dedicated deposit smart contract contains only 19% of the total amount of ETH required for the developers to start rolling out Beacon Chain, the critical component of Ethereum 2.0. While the launch is preliminarily scheduled for December 1, it may be postponed if the project fails to secure at least 524 288 ETH (over $250 million at the current exchange rate) from 16,384 validators.

ETH holders are anxious

The cryptocurrency community is not satisfied with the progress. Many experts, including Arcane Research, believe that the team won't be able to reach the threshold by December 1. 
 
The experts pointed out that less than two weeks were left before the launch date, but the project still needs to support at least 13,424 staking validators.

The community members are also hesitant. Moreover, the slow progress deters many of them from joining the network. 

It is worth noting that an ETH holder needs to transfer to the deposit smart contract at least 32 ETH (over $15,000), which they won't be able to retrieve or use for an indefinite period. These stakes will be effectively locked until the transition to Ethereum 2.0 is completed, which is expected to happen in two years at the soonest.

A Reddit user recently applied to the Ethereum Foundation with a question:

I want to stake 32 ETH in the Deposit Contract, but I'm worried it won't hit the launch target. How can the EF reassure me that my ETH won't be stuck forever if we never hit the target?  

The co-founder of Ethereum, Vitalik Buterin, joined the conversation and tried to elevate the concerns by pointing out that the staking would accelerate, and the target could still be met. 

Moreover, the delay won't derail the whole plan as the developers will move on to an alternative scenario. According to Ethereum 2.0 developer Danny Ryan, the genesis block will be triggered seven days after the threshold, whenever it happens.

Also, Buterin said that the minimum deposit might be slashed if needed to attract more validators and speed up the process. 

In the very unlikely event that eth2 somehow never progresses past phase 0, I would fully support a state-intervention hard fork to add withdrawal support to the deposit contract so stakers can get their funds back, he added.

Whales are less hesitant that retail users

Meanwhile, the lion's share of staking deposits has come from whales or large institutional investors. For example, Vitalik Buterin transferred 3,200 ETH to the deposit smart contract.  

Also, in a recent development, a Dubai investment firm, IBC Group, transferred $10 million worth of ETH to support the Ethereum 2.0.  Khurram Shroff, chairman of IBC's board, explained that the company wanted to show its confidence in ETH2 and its dedication to the beacon chain.

Meanwhile, Ethereum Foundation announced its plans to donate to the projects that are ready to participate in ETH 2.0 staking.

ETH is moving within a bullish trend

Meanwhile, ETH/USD continue moving within the bullish trend. The second-largest digital asset retested the psychological $500 on Wednesday amid strong upside momentum across the board. 

ETH/USD, weekly chart

ETH/USD, weekly chart

Once the resistance of $500 is taken out, ETH/USD recovery may gain traction with the next long-term target at $800. This area stopped the recovery attempt in $2018 and triggered a sharp sell-off below $100.

On the downside, the critical support comes at $350. A sustainable move below this area will invalidate the bullish scenario.

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

More from Tanya Abrosimova
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Aave Price Forecast: AAVE primed for breakout as bullish signals strengthen

Aave (AAVE) price is trading above $204 at the time of writing on Friday and approaching the upper boundary of its descending parallel channel; a breakout from this structure would favor the bulls.

Meme Coins Price Prediction: DOGE, SHIB, PEPE stall amid warming retail demand

Meme coins, including Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), struggle to regain strength as the broader cryptocurrency market recovers. Derivatives data reveals fresh retail demand as Open Interest of DOGE, SHIB, and PEPE futures surge.

Terraform Do Kwon gets 15-year prison sentence for role in Terra-Luna $40 billion crash

Terraform Labs founder Do Kwon was sentenced to 15 years in prison by a New York federal court on Thursday for his role in organizing one of the largest cryptocurrency frauds in history.

Top 3 Price Prediction: BTC and ETH eyes breakout, XRP steadies at support

Bitcoin (BTC) and Ethereum (ETH) are nearing the key resistance levels at the time of writing on Friday, and a successful breakout could open the door for a fresh rally. Meanwhile, Ripple (XRP) is stabilizing around a crucial support zone, hinting at a potential rebound if buyers maintain control.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.