Ethereum's Proof of Stake model sees significant growth, enhancing network security and participation with 34 million ETH staked and nearly 1.1 million active validators.
Ethereum, the second-largest cryptocurrency by market capitalization, has reached a significant milestone in its Proof of Stake (PoS) model. The network now boasts 34 million ETH staked and nearly 1.1 million active validators. This growth highlights the increasing participation and security of the Ethereum network.
Staking in Ethereum involves locking up a certain amount of ETH to support the network's operations, such as validating transactions and securing the blockchain. Validators are rewarded with additional ETH for their participation. The minimum amount required to become a validator is 32 ETH, and the average balance per validator currently stands at 32.06 ETH.
Over the past 90 days, the amount of staked ETH has increased by 9.84%, reaching 34 million ETH. This staked amount represents a substantial portion of Ethereum's total supply, reducing the circulating supply in the open market. This reduction could potentially lead to upward price pressure for ETH, benefiting investors and the network as a whole.
The number of active validators on the Ethereum network is nearing 1.1 million, with current figures showing 1.06 million validators. This surge in validators strengthens the network's security and resilience, as more participants are involved in validating transactions and maintaining the blockchain.
Entities like Lido have seen notable growth in market share, with Lido accounting for 30% of the total staked ETH. Centralized platforms such as Coinbase and Binance have also experienced increases in staked ETH, indicating a diverse range of participants in the staking ecosystem.
Amidst this growth, Ethereum co-founder Vitalik Buterin has proposed improvements to the staking mechanism. One such proposal aims to impose penalties on validators based on their failure rates. This change is intended to promote better decentralization and enhance the network's resilience by encouraging validators to maintain high performance standards.
