Why are there so few people participating in Ethereum 2.0 staking?

For some people, the price of 32ETH is simply too expensive.

The first part of Ethereum 2.0 is expected to be launched in early December. But so far, the amount of ETH staked is only 10% of the required amount, which means Ethereum will not be upgraded as scheduled.

Staking Ethereum means locking up a specific amount of ETH in exchange for rewards. Ethereum 2.0, an upgrade to the Ethereum network, is coming soon, making Ethereum far more scalable than it is today. So why are some Ethereum advocates announcing that staking on Ethereum will not happen in the future? Because it’s just too complicated for many users.

“Right now, the only option is to run your own Ethereum 2.0 node. This is much easier than setting up a mining rig, but still difficult for many ordinary users,” said Lito Coen, founder of CryptoTesters.

Users currently have to run their own nodes to get a piece of Ethereum because many platforms that offer nodes to users, such as Stakewise, are not fully ready yet. Only a few, such as LiquidStake, are already up and running.

As a result, only a few people are participating in staking to drive Ethereum's upgrade. After some initial large deposits, the influx of staked ETH has slowed down. According to Dune Analytics, as of press time, only 276 stakers have deposited 57,000 ETH ($26.5 million).

However, this is still far from the target. If Ethereum 2.0 is successfully launched, at least 16,384 stakers will be required to stake 524,288 ETH.

Kirill Kutakov, co-founder of Stakewise, said, “There are still a lot of technical details that need to be worked out to ensure the safe use of the platform. Clients, audits, adaptability, and waiting for changes in the ETH 2.0 specification, to name a few.”

Currently, those who bet on Ethereum are those who have the ability (or confidence) to run their own nodes. "These people are well aware of all the risks and have a lot of capital," said Kutakov.

Ethereum 2.0: A series of questions

On Twitter, Ethereum 2.0 researcher Justin Drake launched a poll. Among the 3,600 voters, 50% said they did not plan to stake on the Ethereum network, and only a few said they planned to participate.

People are very concerned about how much money it costs to participate in staking. To participate in staking, users need a total of 32 ETH. At the time of writing this article, it is about $14,600, which is simply too expensive for most users. "So this is basically for rich people." Another Reddit user said.

Another concern is that the funds will be locked for two years. According to a Reddit post, those who participate in staking are "people who fully believe in the future of Ethereum and do not need any funds urgently."

Other comments on Drake’s Twitter poll suggest that the technology required for staking is also difficult for many people to understand.

Farid Rached said: “I was planning to do this but the technical requirements are too high for me.” Another Twitter user asked: “Can you share some tutorials to help us understand how this process works? Do I have to run a node?”

Finally, there are some skeptics who are skeptical about the future of Ethereum. The price of Ethereum may be rising, but, for some onlookers, this is not an indication of the future. Reddit user WolfOfFusion said: "We don't know if this is the beginning, the end or the middle of the so-called bull run." He added, "We can only guess."