The number of validators on the Ethereum (ETH) network has surpassed one million, and the number of blockchain nodes has grown to 13,900.
There are currently more than 32 million ETH staked on Ethereum, worth $114 billion. This represents more than 26% of the total supply of the second cryptocurrency, which is why some community members are worried.
Most ETH is still focused on Lido
According to Duneat the time of writing, the number of validators on the Ethereum network has reached 1,002,488. The number of tokens locked in staking, meanwhile, is estimated at 32,079,608 ETH.
More than 30% of all coins are placed in the Lido Finance liquid staking pool. In second place is the cryptocurrency exchange Coinbase. On it, users blocked 14% of the total amount of ETH placed on staking.
Ethereum staking. Source: Dune
Daily and monthly staking income on Ethereum has also reached record levels. This data is provided by The Block.
Income from Ethereum staking. Source: The Block
Why many validators are bad
Validators ensure the security of the network and maintain its functionality. It seems that the increase in their number could be quite a good thing for the blockchain. However, not all experts think so.
Former employee of the non-profit organization Ethereum Foundation Evan van Ness, for example, wrotethat there are too many validators. How is that noted Novadash staking pool manager Gabriel Weide may cause disruptions during transactions.
Coinbase Wallet Head of Engineering Peter Kim expressed more optimistic opinion. According to him, the current number of validators is impressive. However, as the specialist noted, it is “artificially inflated due to the limit of 32 ETH” – by paying this amount, anyone can become a blockchain node.
The Pectra upgrade is scheduled for the end of 2024. With its help, the developers want to increase the maximum amount of ETH per validator to 2,048 tokens. As planned, the update will have a restraining effect on the number of nodes.
Vitalik knows what to do
Vitalik Buterin, co-founder of Ethereum, yesterday proposed to fine validators in proportion to the deviation from the average failure rate. In his opinion, this will help reduce centralization, reduce the advantage of large stakers and increase the competitiveness of solo stakers.
Prior to this, the programmer also presented a plan to simplify the staking mechanism. In particular, Buterin had the idea to divide the stakers into “heavy” and “light” ones. For the former, the threshold for launching the angle will be 4,096 ETH, and for the latter it will be completely removed.
Source: Cryptocurrency
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