Ethereum (COIN: ETHUST) The Merge update was once the most anticipated news in the crypto space, but now that it is in the past, the next highly anticipated update is the Shanghai Network update.
As the scheduled update of the Shanghai network, scheduled to be launched in March, approaches, the number of auditors is growing. It recently passed the 500,000 mark since the merger, according to BeaconScan data.
The total number of Ethereum authentications exceeds 500,000
After crossing the 400,000 mark in July last year, the number of validators on Ethereum has now surpassed 500,000 and currently stands at 501,893.
For context, a blockchain validator is one that verifies and validates transactions on the blockchain network to prevent double spending errors, among other blockchain activities.
Since the Ethereum blockchain has recently switched from a proof-of-work (PoW) mechanism to a proof-of-stake (PoS), validators on the ETH network are now required to have a set amount of 32 ETH, which is roughly equal to $50,302 in current market cap, to be Eligible to validate transactions.
Due to the recent introduction of the PoS mechanism on the Ethereum network, features like withdrawing funds have been delayed. However, after the scheduled release of the Shanghai Update, which will allow validators to withdraw their bets from ETH and finally profit, there has been an exponential increase in the number of validators.
To avoid a massive and sudden exodus of validators following the release of the Shanghai Update, ETH developers have set a withdrawal limit of 43,200 ETH per day from the total amount of ETH heaped in existence.
The reason behind the rise in Ethereum validators
While it may appear that the rise of Ethereum validators is due to the upcoming network upgrade in Shanghai, it is due to the ease of access of being a validator on the blockchain created by other platforms such as Lido and Rocket Pool.
These two platforms allow you to be a validator on the Ethereum network without having to share a total of 32 ETH. Lido and Rocket Pool allow users with as little as 32 ETH to participate as validators. In exchange for the stacked ETH, the user receives liquid derivative tokens, also known as LSDs, which can be used to generate additional income in DeFi.
While the number of Ethereum validators continues to increase, the token itself has followed the bullish trend in the cryptocurrency market. Over the past seven days, ETH is up 18.9% and is currently trading at a market price of $1,571 at the time of writing, with a 24-hour trading volume of $8.3 billion.
With information from Bitcoinist