Ethereum ICO Project Golem Starts Staking Over $120 Million in ETH After Massive Sale

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As a seasoned crypto investor with a deep understanding of the Ethereum and decentralized finance (DeFi) ecosystems, I’m excited to see Golem taking steps towards becoming an active participant in Ethereum’s staking mechanism. This move not only demonstrates their commitment to supporting Ethereum’s growth but also showcases their confidence in the potential yield that staking can bring.

A Ethereum initiative named Golem (GLM), which raised funds through an initial coin offering (ICO) amounting to approximately 40,000 ETH or around $124 million, has recently transferred this capital to initiate staking and validate transactions on the network. By doing so, they aim to earn rewards and ensure network security.

Based on information from the cryptocurrency analytics company Lookonchain, Golem transferred approximately 3,000 ETH, equivalent to around $9.3 million, to major exchanges Binance, Coinbase, and Bitfinex. This action follows Golem’s sale of nearly $100 million worth of Ethereum earlier this month.

The Golem project’s Ethereum account (Golem@golemproject) seems to have ceased trading $ETH, and approximately 40,000 dollars worth of $ETH or around 124.6 million in total value (124.6M USD), was staked there about 8 hours ago.— Lookonchain (@lookonchain) July 11, 2024

Golem, as described by Coinbase, is a decentralized computing platform designed to share excess processing capabilities amongst users via a peer-to-peer network. This enables participants to trade computational tasks.

In this marketplace, the native token GLM serves as the means of exchange. Users post bids for GLM in return for having tasks accomplished on their behalf. Task completions are rewarded with the same GLM tokens.

In a recent blog entry, Golem discussed Ethereum’s staking process, mentioning that it will utilize a “moderately significant yet minimal” portion of its funds for conducting “preliminary ETH staking experiments.” This action is intended to contribute to the advancement and progression of the Ethereum project.

The project intends to invest a portion of its Ethereum reserves to earn returns. These gains will be allocated towards covering operational costs, fostering ecosystem growth, and promoting the potential uses of Golem Network’s decentralized computing platform.

As an analyst, I would express this as: I, Golem, aim to demonstrate my commitment to Ethereum’s decentralization initiatives by staking my funds independently, without the assistance of third-party services or other validators.

According to CryptoGlobe’s latest update, the amount of Ethereum (ETH) staked in Ethereum 2.0 has reached a record-breaking peak of 47.38 million ETH, which represents approximately 33.9% of the total Ethereum supply in circulation.

Based on information from the cryptanalysis firm Santiment, the proportion of a specific cryptocurrency’s supply kept in the ETH2 Beacon Deposit Contract has significantly increased, jumping from approximately 10.9% two years ago to exceeding $140 billion currently.

As a crypto investor, I’ve noticed an increase in staking activity within Ethereum 2.0. More and more users, including myself, have chosen to lock up their ETH to become validators. By doing so, we contribute to securing the network using the new Proof-of-Stake consensus algorithm. In exchange for our commitment, we receive staking rewards. However, it’s important to remember that Ethereum 2.0 continues to be a deflationary cryptocurrency due to an earlier upgrade where transaction fees are burned instead of being returned to the market.

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2024-07-12 03:23