Key Takeaways:
- Ethereum has reached a landmark of one million validators, with 32 million Ether (worth approximately $114 billion) staked, representing 26% of its total supply.
- Around 30% of the staked ETH is managed through Lido, a major Ethereum staking pool, indicating a preference among users for pooling resources for staking.
- Concerns arise about the network’s scalability and security with the increasing number of validators, leading to discussions on potential structural changes and penalties for validators to ensure more balanced participation.
The Ethereum blockchain recently celebrated a significant milestone, achieving a total of one million validators.
This achievement comes as 32 million Ether (ETH), worth an estimated $114 billion at current prices, is now staked within the network.
ETHEREUM HITS 1 MILLION VALIDATORS – 27% OF ALL $ETH NOW STAKED
— BSCN (@BSCNews) March 28, 2024
– The #Ethereum network has now hit the incredible milestone of 1 million network validators.
– Said validators are operated by a full 13,900 individual nodes which collectively stake more than 32 million $ETH.
-… https://t.co/SeG9dqQJJz pic.twitter.com/WPtQByyfaK
This information was revealed on March 28 via the Dune Analytics dashboard, developed by Hildobby, which monitors the progress of Ethereum’s staking.
The data indicated that the one million validators have collectively staked 32 million ETH, representing 26% of Ethereum’s entire supply.
Notably, approximately 30% of the staked ETH is managed through Lido, a leading Ethereum staking pool.
Over 1 million Ethereum validators
— Evan Van Ness 🧉 (@evan_van_ness) March 27, 2024
👀 pic.twitter.com/5Rlc6uB8EC
Staking pools such as Lido are favored among users with less ETH, as they provide an opportunity to collectively stake assets and engage in the network.
Validators play a crucial role in maintaining the blockchain’s integrity, overseeing the network for any fraudulent activities like double-spending.
In the Ethereum ecosystem, validators contribute by proposing and validating transactions.
Those interested in becoming validators must stake 32 ETH, earning a small return in ETH as compensation.
However, the expanding validator count, while potentially enhancing blockchain security, has sparked concerns within the community.
Some believe an excessive number of validators could introduce challenges.
Evan Van Ness, a venture investor and proponent of Ethereum, suggested that the amount of ETH currently staked might be “too much.”
Similarly, Gabriel Weide, who operates a staking pool, expressed worries that an overload of validators could lead to transaction failures.
The #Ethereum network reached 1 million validators with 32 million $ETH staked, making up 26% of the total supply.
— Satoshi Club (@esatoshiclub) March 28, 2024
Currently valued at ~$114 billion. Lido dominates the scene with 30% of the stake. pic.twitter.com/gJ5BNsVsr5
Peter Kim, Coinbase Wallet’s head of engineering, acknowledged the impressive number of validators but pointed out that the figure is “artificially inflated” due to the 32 ETH requirement. He hinted at possible changes to this structure in the future.
In response to the rising validator numbers and to promote further decentralization, Ethereum’s co-founder Vitalik Buterin proposed a novel approach.
According to Dune, the number of Ethereum validators has exceeded 1 million.https://t.co/Ab38Cm4coH pic.twitter.com/uoPFdPvsD2
— OKX Ventures (@OKX_Ventures) March 28, 2024
On March 27, Buterin recommended imposing penalties on validators based on their average rate of failure.
This method aims to balance the scales between large and small ETH stakers, potentially curbing the dominance of major players.
About The Author
Fleming Airunugba, a seasoned Web3 and crypto content expert, leverages his deep understanding of blockchain technology to bring the latest and most impactful news to the crypto community.
With a knack for engaging storytelling and strategic content creation, Fleming is dedicated to educating and inspiring his audience with insightful analysis on cryptocurrencies, NFTs, and the future of digital finance.
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