Why Interest For Ethereum Staking Dropped to 0
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This week, the queue of people wanting to act as Ethereum validators has shrunk to zero. This is an incredible deviation from the peak on June 10, 2023, when there were 96,508 validators in the staking queue. Investor appetite for Ethereum staking has dropped significantly. What is the reason for this trend? Let’s look at the situation a little closer. Ethereum Whales Continue to Accumulate Holders of addresses with at least one million ETH currently account for 32.3% of the total supply of this cryptocurrency. According to Santiment analysts, this is the highest result since 2016. Interest in the coin remains at a serious level. Ethereum whales. Source: Santiment At the same time, the network itself faced criticism of the growing centralization expressed by JPMorgan bank analysts. According to them, the high popularity of staking platforms poses a risk to the blockchain because it currently depends on a few large players. What’s Going on With Ethereum Staking? Validators store transaction history on the network, validate new transfers, and add new blocks. In the case of Ethereum, 32 ETH is required to perform staking, which means that few cryptocurrency investors can afford it. The chart below shows the decrease in the “entry” queue, i.e., the number of people who want to obtain the title of validator and start receiving rewards for it, marked in blue. The “exit” queue is also marked in red – these are those network members who withdraw their ETH from staking and stop fulfilling their duties. As already noted, on Oct. 16, the number of people willing to become validators on the Ethereum network dropped to zero for the first time. This means that no one wanted to send their ETH for staking that day. Ethereum validator queue. Source: Validator Queue The queue itself is created due to the technical specificity of the staking process. Only 3,600 validators per day can perform simultaneous input and output…
Filed under: News - @ October 20, 2023 2:26 pm