NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Ethereum Validator Queues See Drastic Reduction, Staking Yield Drops

Published 2023-10-16, 02:50 p/m
© Reuters
ETH
-

The Ethereum network has seen a significant decrease in its validator entry and exit queues, according to data from Validator Queues. As of Monday, only a handful of validators are waiting for initiation, with the process taking roughly 15 minutes. This development marks a stark contrast to situations earlier this year, such as in May 2023 when over 90,000 validators were queued for more than 40 days to join the network.

This reduction in queue times is attributed to adjustments made to the churn limit, allowing up to 2,925 validators per day to enter or exit the network. Analyst Tom Wan from 21 Shares highlighted this change, noting that it now accommodates up to 93,600 new Ethereum deposits daily without extending new validator wait times.

Despite these operational improvements, the conditions for becoming an Ethereum validator remain unchanged. The minimum stake required is still at 32 ETH, equivalent to approximately $50,000.

The decrease in queue times coincides with a drop in the staking yield for Ethereum validators. The staking rewards reference rate currently stands at approximately 3.3%. This is a noteworthy downturn considering the recent surge in interest and participation in Ethereum's proof-of-stake model.

The current developments indicate a more efficient onboarding process for Ethereum validators, potentially encouraging further participation despite the reduced staking yield. However, it remains to be seen how these changes will impact Ethereum's overall network dynamics and performance in the long term.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.