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cryptocurrency December 23, 2020

Ethereum 2.0 Validators are Earning 0.002792 ETH per Day 2

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Quick summary:

  • Ethereum 2.0 validators are currently earning 0.002792 ETH per day
  • This is approximately $1.71 using an ETH value of $613
  • This translates to approximately 3.2% annual interest when compounded
  • Ethereum has continued to trade above the $600 support zone

Ethereum 2.0 validators are currently earning 0.002792 ETH per day. This is according to data from the team at Flipside Crypto who also point out that this amount roughly translates to $1.71 per day using an ETH rate of $613. The team at Flipside Crypto shared their observation on the validator earnings on Ethereum 2.0 via the following tweet and accompanying chart.

0.002792 ETH Per Day = 3.2% Annual Interest

Using the assumption that each Ethereum 2.0 validator holds 32 ETH, the 0.002792 ETH implies a daily interest of 0.008725%. When this amount is compounded over a year, the annual interest is approximately 3.2% for each Ethereum 2.0 validator holding 32 ETH.

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However, a more precise method of calculating Ethereum 2.0 rewards has been formulated by the ETH2.0 Calculator Telegram Group through a publicly available online spreadsheet.

Ethereum Continues to Hold the $600 Support Level

As earlier mentioned, Ethereum is trading at $613 after posting a two-year peak value of $675 on the 17th of December. A brief look at the daily Ethereum chart, reveals that ETH is in the midst of a correction with the $600 price area acting as adequate short-term support.

Ethereum’s fate is very much tied to that of Bitcoin. Therefore, Ethereum holding $600 depends on Bitcoin experiencing sideways movement or continuing with its bullish climb above $24k. If Bitcoin were to correct hard by dropping to the $20k price zone, Ethereum will lose the $600 support zone and possibly enter into the lower $500 levels.

As with all analyses of altcoins such as Ethereum, traders and investors are advised to set adequate stop losses and use low leverage when trading ETH on the various derivatives platforms. Having an eye out for sudden movements by Bitcoin in either direction is also recommended.