If ETH 2.0 is successful, it will scale Ethereum’s throughput by over 1,000x without sacrificing decentralization. But it won’t happen overnight: Messari.
Congrats on the launch all!
— vitalik.eth (@VitalikButerin) December 1, 2020
Ethereum 2.0 Beacon Chain just went live. This marks the phase of the journey towards ETH 2.0. At the time of writing, ETH holders stakes over 880,673 ETH, far more than the required threshold of 524,288 in a bid to set the wheels in motion. Ethereum core developer, Eric Connor, revealed that 85% participation so far for 2.0 has been reached, and was above the 2/3rd threshold.
“Onto epoch 1, epoch 0 is finalized.”
Despite the fact that the leading up process was long and drawn-out, Ethereum 2.0 is finally here despite the fact that a complete transition to Ethereum 2.0 starting today will take several years. A crucial development for the ecosystem since launching the Proof-of-Stake [PoS] blockchain is expected to serve as the backbone and foundation for one of the most valuable smart contract platform
Ryan Watkins had previously stated,
“ETH 2.0 was built to provide the bedrock for the next evolution of the cryptoeconomy. One where Ethereum’s burgeoning ecosystem of composable and symbiotic decentralized finance protocols as well as many more applications can flourish.”
Here’s What It Means For Ethereum Investors
Normally, investors do not need to make any changes in order to prepare for Ethereum 2.0 since Ethereum holdings will not be affected in any way by the arrival of the largest ever upgrade. However, there is a lot of optimism amidst the market participants interested in taking on the new Ethereum network to begin staking at the Genesis phase of the project instead of waiting for Phase 1.5, primarily because the long-term outlook of ETH appeared to be bullish.
One of the main indications of this positive development was the fact that the value staked in the Ethereum 2.0 deposit contract address exhibited a strong correlation with the price of the token.
Another factor that could potentially decrease the selling pressure on Ethereum, for the long-term, is the $558 million worth of ETH getting deposited into the 2.0 deposit contract address.