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ETH price regains $4K as possible Ethereum 2.0 'full validator' count hits 17-month low

Friday, 14 May 2021

 



The number of Ethereum addresses that hold more than or equal to 32 Ether (ETH) is declining, pointing at a possible lack of interest among traders and investors to become "full validators" for its upcoming proof-of-stake blockchain.

At the same time, the price of ETH has rebounded back above $4,000 on May 14, and Bitcoin (BTC) tries to reclaim $51,000 following this week's "Elon candle" plunge.

Eth2 validators wanted?

On-chain data analytics platform Glassnode revealed that the number of externally-owned Ethereum addresses (EOAs) fell to its lowest levels in the last 17-months — to 108,915. As of November last year, the count was around 127,500.


Glassnode analysts see the Ethereum addresses with at least 32 ETH tokens as "potential validators" on the Eth2 blockchain. In retrospect, staking in the upcoming Ethereum proof-of-stake protocol requires users to deposit at least 32 ETH to become a full node validator. In doing so, the ETH creditors will become responsible for storing data, processing transactions, and adding new blocks to the Ethereum blockchain.

The staking functionality aims to secure the Ethereum network while ensuring consistent ETH rewards for entities that stake their capital in achieving the mettle. It further signifies the Ethereum developers' aim to make their public ledger cheaper, faster, and more scalable for users — in short, ensuring a transition from an energy-intensive proof-of-work protocol to the proof-of-stake one following the community's approval.

The Eth2 smart contract went live on November 4 via a "Beacon Chain upgrade" and sought at least 524,288 ETH to meet a so-called genesis threshold, the one that proves actors' consent over Ethereum blockchain's upgrade to proof-of-stake. As of May 14, 0940 GMT, the smart contract had a total of 4,563,074 ETH. A Kraken address became a full validator on the Eth2 network just 37 minutes ago from the time of writing.

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