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Weekly Ethereum 2.0 Deposits Drop to All-Time Lows

Weekly Ethereum 2.0 Deposits Drop to All-Time Lows

Weekly deposits of the Ethereum 2.0 staking contract have fallen recently due to the fall in the price of ETH, and are now at the lowest value on record.

Ethereum 2.0 contract now only sees 32-ETH 122 deposits per day

According to a report from analytics firm Glassnode, average ETH 2.0 deposits have fallen sharply recently as the price of cryptocurrencies plummets.

The “ETH 2.0 Stake Contract” is a smart contract where users can lock their Ethereum to become a validator on the proof-of-stake network and earn rewards.

However, a minimum of 32 ETH must be deposited into the contract to bet on the network. However, there are betting groups where users with less than the amount can bet collectively with others.

In 2020 and 2021, the contract was considered lucrative by many, as the average weekly deposit of 32 ETH generally hovered around 500-1000 per day. That changed recently, however.

The chart below shows the trend of the Ethereum 2.0 staking contract since January 2021.

The value of the metric seems to have been quite low in recent days | Source: Glassnode

As you can see from the chart, the number of Ethereum 2.0 deposits per day (7-day average) has decreased in recent weeks.

The value of the metric on the 3rd of this month was only 122, which is the lowest ever recorded in the history of the ETH 2.0 staking contract.

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The report suggests that this recent slowdown in the indicator is due to the drop in the price of ETH, which has now fallen even below the all-time high of 2018.

Here is a graph showing the portion of the deposited supply of ETH 2.0 that has recently generated profits:

It seems that most of the winning offer was wagered in January 2021 and before | Source: Glassnode

The supply of ETH 2.0 in profit has been on a downward trend since the beginning of 2021, and today only 17% of the total deposited supply is in profit.

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Much of the supply that is currently profitable was done in or before early 2021, when the price of cryptocurrencies was below $1,000.

83% of supply underwater likely explains why Ethereum 2.0 contract deposits have been very low in recent weeks.

ETH Price

At the time of writing, the price of Ethereum is hovering around $1.1k, up 4% from last week. Over the last month, the cryptocurrency has lost 32% in value.

Below is a chart showing the price trend of ETH over the past five days.

The value of cryptocurrencies has fallen in recent days | Source: ETHUSD on TradingView Featured Image by Jievani Weerasinghe on Unsplash.com, Charts from TradingView.com, Glassnode.com

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