By Shelly Melancon (Switzerland)
Data from Glassnode analysts has revealed that the number of Ethereum addresses holding a minimum of 32 ETH has reduced in the past months. Ethereum addresses that hold more or equivalent to 32 Ether (ETH) have gradually continued to thin out in the recent months. Analysts believe that the situation became evident as more traders and investors begin to lose interest in the prospects of becoming total validators for the cryptocurrency in its upcoming proof-of-stake blockchain.
According to on-chain data analytic, Glassnode has disclosed that the Ethereum addresses (EOA) have declined to their lowest in 17 months at 108,915 as against November when the numbers were at 127,500.
However, within the same period of the decline, the price of Ethereum has peaked back up to values that hovered above $4,000 on Friday. It’s counterpart BTC has made attempts to regain its value after the controversial announcement from Tesla’s Elon Musk on Twitter about the company suspending the use of Bitcoin as a payment alternative, essentially leading the cryptocurrency to shed huge value within a short time.
Are More Validators Needed for Eth2?
The addresses that hold more than or 32 ETH tokens are seen as “potential Validators” on the ETH2 blockchain by Glassnode analysts. As can be recalled, staking on the upcoming Ethereum proof-of-stake protocol needs investors to deposit a minimum of 32 ETH to become full node validators. ETH creditors through this process automatically take over the responsibility for the storage of data, the addition of newer blocks to the Ethereum blockchain and the processing of transactions.
On November 4th, the ETH2 smart contract went live through a “Beacon Chain Upgrade”. At least 524,288 ETH was sought to attain the acclaimed genesis threshold which indicates the consent of actors over an upgrade from Ethereum to PoS. The smart contract recorded over 4,563,074 ETH on Friday with a Kraken address attaining the status of a full validator on the ETH2 network at the time of this report.
Staking functions on the Ethereum network is intended to ensure that ETH rewards are gotten by individuals and bodies that stake their capital to achieve the mettle whilst also securing the network. The viability of staking as well goes on to signify that ETH developers have a goal to make their public ledger less expensive and much efficient.
The value of one Ether has peaked up to about 900% since the Beacon Chain upgrade. Attaining the status of full validators on the ETH network now seems nearly unattainable for many retail investors as they will be required to hold at least 32 ETH at its present value which is approximately $128,000.
This, however, does not suggest that ETH2is without newer interests in staking on the network. Through third-party services, the project makes it easier for small and average stakeholders to pull their ETH lot together. In essence, the collective fund puts in 32 ETH to the smart contract on the Eth2 network.
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