Ethereum Total Validators Surpasses 500,000 As Shanghai Upgrade Draws Near

The Ethereum merge upgrade was once probably the most anticipated news within the crypto space, but now that it’s up to now, the following anticipated update is the Shanghai network upgrade.

Because the scheduled Shanghai network upgrade, which is anticipated to be launched in March, draws near, the variety of validators has been seen increasing. It has recently exceeded the five hundred,000 benchmark because the merge, in line with data from BeaconScan

Ethereum Total Validators Exceeds 500,000

After surpassing the 400,000 benchmark in July last 12 months, the variety of validators on Ethereum has now crossed 500,000 and is currently at 501,893. 

For context, a validator or a blockchain validator is one who verifies and validates transactions on a blockchain network to stop double-spending errors, amongst other blockchain activities.

Since the Ethereum blockchain has recently moved from a Proof-of-work (PoW) to Proof-of-stake (PoS) mechanism, validators on the ETH network should now stake a certain quantity of 32 ETH, which is price about $50,302 at current market value, to be qualified for validating transactions. 

For the reason that PoS mechanism was newly introduced to the Ethereum network, features just like the withdrawal of funds were delayed. Nevertheless, following the scheduled launch of the Shanghai upgrade, which can allow validators to withdraw their staked ETH and profit finally, there was an enormous increase within the variety of validators.

To stop a sudden, mass exodus of validators after the Shanghai upgrade launch, the ETH developers have placed a withdrawal limit capped at 43,200 ETH per time out of the whole amount of staked ETH in existence.

Reason Behind The Surge In Ethereum Validators 

Though it could seem as if the rise in Ethereum validators is as a result of the network’s upcoming Shanghai upgrade, it’s more of the straightforward accessibility of being a validator on the blockchain created by other platforms akin to Lido and Rocket Pool.

These two platforms allow one to be a validator on the Ethereum network without having to stake a complete of 32 ETH. Lido and Rocket Pool let users stake lower than 32 ETH to participate as a validator. In exchange for his or her staked ETH, the user receives liquid staking derivative tokens, also often called LSDs, that may be used to generate additional yields in DeFi.

ETH price is moving sideways on the 4-hour chart. Source: ETHUSDT on TradingView.com

While the variety of Ethereum validators continues to surge, the token itself has followed the bullish trend within the crypto market. Previously seven days, ETH has rallied by 18.9% and is currently trading at a market price of $1,571 on the time of writing, with a 24-hour trading volume of $8.3 billion.

Featured image from Freepiks, chart from TradingView.com

Leave a Comment

Copyright © 2024. All Rights Reserved. Finapress | Flytonic Theme by Flytonic.