Staked ETH Increases To Over 16 Million On The Ethereum Network
According to recent data from analytics firm Glassnode, the number of staked Ethereum (ETH) has surpassed 16 million; an achievement that marks a significant milestone for the Ethereum network.
More Validators On The Network
This number continues to grow, especially after the Ethereum 2.0 upgrade which successfully transitioned the network to a proof-of-stake consensus mechanism.
This transition led to an increase in the number of Ethereum staking pools, which allows users to pool their resources together to increase their chances of being selected as a validator.
Staking is the process of holding and actively participating in the validation of transactions on a blockchain network.
In the case of Ethereum, stakers can earn rewards for helping to secure the network by holding and validating transactions.
Reports from an analysis firm, indicates that the number of active validators on the network is now over 400,000; with the number of staked Ethereum plunging over 16% after the merge.
The shift to proof-of-stake also made it easier for smaller investors to participate in the staking process and earn rewards.
Proof Of Stake Improving The Network
The Ethereum 2.0 upgrade introduced a number of changes to the network, including a shift to a proof-of-stake consensus mechanism, which replaced the previous proof-of-work mechanism.
This change has improved the scalability, security, and energy efficiency of the network. The shift to proof-of-stake is expected to attract a wider range of users and investors and improve the overall performance of the network.
The increase in staked ETH also has implications for the cryptocurrency’s price. As more and more ETH is locked up in staking, it reduces the overall supply of ETH available on the market.
This can lead to increased demand and higher prices for the cryptocurrency.
It is worth noting that, with the current high gas fees, more and more users have been incentivized to stake their ETH as an alternative to using them in transactions.
Many experts believe that the Ethereum 2.0 upgrade has been a major catalyst for the cryptocurrency’s growth in the long term.
The shift to proof-of-stake has attracted more users, and the increase in the number of staked ETH is a positive sign for the future of the Ethereum network.
The rise in the number of staked ETH also indicates a growing belief in the long-term value of the cryptocurrency.
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