The Ethereum merger upgrade was once the most anticipated news in the crypto space, but now that it is a thing of the past, the next scheduled update is the Shanghai network upgrade.
Such as the planned upgrade of the Shanghai network, which is expected to be launched in March, approach, the number of validators has been seen to increase. It recently passed the 500,000 mark since the merger, according to BeaconScan data.
Total number of Ethereum validators exceeds 500,000
After surpassing the 400,000 mark last July, the number of validators on Ethereum has now crossed 500,000 and is currently at 501,893.
For context, a validator or blockchain validator is one who verifies and validates transactions on a blockchain network to prevent double-spend errors, among other blockchain activities.
Because Ethereum block chain recently switched from a proof-of-work (PoW) mechanism to a proof-of-stake (PoS) mechanism, validators on the ETH network are now required to stake a specific amount of 32 ETH, which is worth approximately $50,302 at value current merchant, be qualified to validate transactions.
Since Point of sale mechanism was recently introduced to the Ethereum network, features such as withdrawing funds have been delayed. However, following the planned launch of the Shanghai upgrade, which will allow validators to withdraw their staked ETH and finally profit, there has been a massive increase in the number of validators.
To avoid a sudden mass exodus of validators after the upgrade was launched in Shanghai, ETH developers set a capped withdrawal limit of 43,200 ETH per day on the total amount of existing staked ETH.
Reason behind the increase in Ethereum validators
Although it may seem that the increase in Ethereum validators is due to the upcoming network Shanghai upgrade, it’s more about the ease of access to being a validator on the blockchain created by other platforms such as Lido and Rocket Pool.
These two platforms allow you to be a validator on the Ethereum network without having to bet a total of 32 ETH. Lido and Rocket Pool allow users to stake less than 32 ETH to participate as a validator. In exchange for their staked ETH, the user receives liquid staking derivative tokens, also known as LSDs, which can be used to generate additional returns in DeFi.
As the number of Ethereum validators continues to grow, the token itself has followed the bullish trend in the crypto market. Over the past seven days, ETH has risen 18.9% and is currently trading at a market price of $1,571 at the time of writing, with a 24-hour trading volume of $8.3 billion. dollars.
Featured Image from Freepiks, Chart from TradingView.com