Ethereum no longer attracts validators : this is what recent statistics have demonstrated. The waiting list is so thin that it astonishes crypto observers.
Ethereum, a blockchain that is less and less attractive?
Last June, Ethereum developers proposed a brilliant revolutionary idea for blockchain. In their opinion, capping the MAX_EFFECIVE_BALANCE at 2,048 ETH, at that time set at 32 ETH, would allow rewards to be instantly compounded and reduce the number of validators.
“ The Ethereum validator queue is finally closing! The drop in demand for staking opens up interesting prospects for new validators who wish to join the network. Don’t miss your chance to be part of the Ethereum revolution! »
If this is the opinion of crypto influencer Mr. Crypto Giants, Coinjournal sees on his side a rather paradoxical situation compared to the track record of this very popular blockchain. Yesterday, Ethereum’s queue did not include that 377 validatorsspecifies the crypto media.
However, at the start of the joint month, this list saw a peak of 96,000 validators.
What can we say about this significant drop? This is similar to a reduction in staking demand on Ethereum. There was a time when applicants from the same network complained about the slow approval of their applications: 45 days waiting time. Additionally, they were facing ETH staking request rejections.
However, the Validator Queue data highlighted a big improvement in waiting time. Instead of the 45 days mentioned above, the duration experienced an drastic drop of 4 hours.
Enough to congratulate Ethereum which has spectacularly succeeded in Shappella upgrade mid-April 2023. Note that Shappella, the contraction of Shanghai and Capella, constitutes a finalization of the blockchain’s transition from Proof-of-Work (PoR) to Proof-of-Stake (PoS).
Drop in ETH staking rewards
Shappella therefore constitutes a crucial step for Ethereum. Some analysts strongly believe that its advent will coincide with an ETH bull run of up to $5,000. Furthermore, a few days after the announcement, CoinShares spoke of a increased interest from institutional investors for the Ethereum blockchain thanks to Shanghai-Capella.
“ Ethereum saw inflows totaling $17 million last week, suggesting investors are growing more confident following the implementation of Shella », concluded CoinShares on April 24.
Which seems entirely logical given that The Merge, Ethereum’s successful update in September 2022, opened several avenues for ETH investors.
But this drop in demand for staking worries some observers. It has in fact led to a decrease in staking rewards. If at the start of the year they were 5 to 6%, the figure has relatively decreased to 3.5%.
In other words, the activities of the Ethereum network generating fees have also decreased, and its number of stakers has increased.
Receive a summary of the news in the world of cryptocurrencies by subscribing to our new service daily and weekly so you don’t miss anything of the Tremplin.io essentials!
