New Ethereum 2.0 Calculator: Stake ETH 1 and Earn 279% in 10 Years

Ethereum Investing

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Sead Fadilpašić

Journalist

Sead Fadilpašić

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Sead specializes in writing factual and informative articles to help the public navigate the ever-changing world of crypto. He has extensive experience in the blockchain industry, where he has served...

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June 25, 2023

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The newly launched ETH 2 Calculator claims that you can earn 279% in ten years by staking one ether (ETH) on the Ethereum 2.0 network. And then, a number of “ifs” appears in this equation.

ETH price tracking platform EthereumPrice.org has launched a new calculator meant to allow a possible look into the future, to show to users how much they could potentially earn by staking on Ethereum 2.0 network, the first phase of which is expected to come this year.

As a reminder, staking refers to “locking up” a network’s digital asset in order to improve the efficacy of a blockchain network. This locking away of funds is what gives the action its name, as participants must first put up a “stake.” In exchange for staking funds and helping to secure the network, participants are often allowed to receive a share of the block rewards. (Learn more: How Does Staking Economy Work?)

The new calculator enables primary options, the amount staked in ETH and a fiat currency to display the stake in, as well as advanced options: expected uptime of Ethereum validator, an average of all validator uptimes, the ETH price, and total ETH staked as a percentage of circulating supply. The greater a validator’s uptime, the greater their total reward, and the higher the total ETH staked as a percentage of circulating supply, the lower the yield, explains the website.

Also, during the Phase 0, each staking node (validator) can only stake ETH 32 (USD 6,286), while third parties are estimated to offer services to those willing to stake smaller amounts.

Leaving all advance options at default, and staking ETH 1, at the current ETH price of USD 196.65, the calculator says that the value of the original stake would be worth USD 225 after a single year and USD 746 after 10 years. This is 279% more than the original price. The annual interest earned on the stake would be 14.26%.

If we play with the total ETH staked and raise it from 1% to 2%, we find that the annual interest earned on the stake will be 10.08%. The original stake would be worth USD 215 in a year and USD 514 in a decade. Raising this to 10%, we get 4.51% annual interest earned, USD 206 in a year and just USD 306 in a decade.

Also, the calculator’s accuracy is questionable given the space’s volatility. Its creators state that it assumes a constant price of ETH, and if one thing is certain in the Cryptoverse is that a price is never constant.

Today, ETH is up by 1%. The price jumped by 13.5% in a week and 51% in a month. ETH also advanced by 27% in a year.
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Learn more: Multi-Client Testnet for Ethereum 2.0 is Live, Bringing Phase 0 Closer