Ethereum Reach 1M Validators, Community Debates ‘Excess’

The Ethereum network has recently reached a significant milestone by surpassing one million validators, who collectively hold 32 million ETH, currently valued at around $114 billion. 

This amount constitutes approximately 26% of the total ETH supply. Notably, about 30% of the staked ETH is contributed through the Lido staking pool, a platform that enables users to pool their assets and participate in staking, particularly beneficial for those with smaller amounts of ETH. 

Within Ethereum, validators engage in suggesting and verifying transactions on the network. Those interested in participating must deposit 32 ETH as a stake, earning a modest ETH reward in exchange.

Image Source: Dune (Validators on hits 1M Mark)

Evan Van Ness, a venture investor and proponent of Ethereum, suggested that there might already be “too much” of staked Ether. On the other hand, Gabriel Weide, who manages a staking pool, expressed concerns that an abundance of validators could potentially result in transaction failures.

Contrary to this, Peter Kim, leading engineering efforts at Coinbase Wallet, acknowledged the considerable number of validators but pointed out that it’s influenced by the 32 ETH cap, which he hinted might undergo revisions shortly.

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