Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Ethereum's 13,900 nodes are running 1 million validators, with 26% of the supply staked

Ethereum's 13,900 nodes are running 1 million validators, with 26% of the supply staked

The BlockThe Block2024/03/28 09:53
By:The Block

The 13,900 nodes supporting the Ethereum network are now running more than 1 million validators. These validators are needed to allow more of the supply to be staked.

The 13,900 nodes supporting the Ethereum network are now running more than 1 million validators.

The increase in validators is needed to allow the nodes to stake more ether on the network. These validators are staking over 32 million of ether, worth more than $114 billion at current prices. This accounts for roughly 26% of the total supply, according to The Block's Data Dashboard .

Validators on Ethereum — such as on other networks — help maintain the blockchain's security by proposing and validating blocks, thus ensuring consensus. They do so by staking 32 ether in return for staking rewards.

Staking platform Lido — which allows users to stake smaller amounts of ether — accounts for around 30% of the staked ether, according to a Dune Analytics dashboard created by Dragonfly researcher known as Hildobby.

Both daily and monthly Ethereum staker revenue recently hit all-time highs, per The Block's Data Dashboard .

Are more validators good for Ethereum?

Not everyone in the Ethereum community is convinced that increasing validator counts and increasing amounts of staked ether are a good thing.

Evan Van Ness, formerly the "Chief Decentralization Officer" at the Ethereum Foundation, posted on social media platform X that there's "arguably already too much staked."

Staking pool Novadash's Gabriel Weide, meanwhile, noted that too many validators could conceivably lead to failed transactions.

"The number is impressive but artificially inflated by the 32 ETH cap," Coinbase Wallet creator Peter Kim argued , adding: "That will change soon though."

Kim was referring to the upcoming Pectra upgrade that will raise the maximum amount of staked ether per validator to as high as 2,048 ether. This will mean a much greater quantity of ether can be staked with fewer validators. This is expected by the end of 2024 and will likely have a dampening effect on the number of validators.

Ethereum co-founder Vitalik Buterin published a blog post yesterday that proposes a penalty for validators proportionate to their average failure rate — potentially mitigating the advantage large ether stakes have over smaller stakes. He also suggested that failure from multiple validators controlled by the same entity could receive a higher penalty. Earlier this month, he also addressed the topic of "lazy stakers" at ETH Taipei.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Bernstein sets $200,000 Bitcoin target for 2025, unaffected by U.S. election results

Share link:In this post: Bernstein predicts Bitcoin will reach $200,000 by the end of 2025. Key factors include the rise of debt in the United States and increased demand from spot ETFs. According to Bernstein, if Trump is to win, then Bitcoin may rise to between $80,000, and if Harris wins, Bitcoin may drop to $50,000.

Cryptopolitan2024/11/04 21:55

South Koreans pay 2.2% higher prices for Bitcoin as FOMO kicks in

Share link:In this post: As FOMO kicks in, Bitcoin holders in South Korea spend 2.2% more on purchases. The ‘Kimchi Premium’ was negative between Oct. 12 and Oct. 20 as Bitcoin traded below the global market average in South Korea. In 2024, the South Korean Won was the second largest fiat currency in Bitcoin, trading at 3.99% after the U.S. dollar, which was at 17.75%.

Cryptopolitan2024/11/04 21:55