Approximately 29% of the total Ethereum supply has been Staked with over 35.8 million ETH in the network.
The number of Validators on Ethereum currently exceeds 1.1 million, demonstrating strong growth of the Proof of Stake system on the Mainnet.
MAIN CONTENT
29% of the ETH supply has been Staked, equivalent to more than 35.8 million ETH.
The number of Ethereum Validators has reached 1,121,810, confirming the network's high security and decentralization.
Proof of Stake promotes security and energy efficiency for the Ethereum network.
What is Ethereum Staking and why is it important?
Ethereum Staking is the process of holding ETH in the network to support the operation and security of the Blockchain, helping to increase stability and decentralization. According to data from on-chain analytics platform Dune Network in July 2024, the rate of ETH being Staked has reached nearly 29%, equivalent to 35,894,642 ETH, indicating a high level of adoption from the community.
This is to support the Proof of Stake consensus mechanism on Ethereum, helping to minimize energy consumption compared to the previous Proof of Work, while also increasing the scalability and security of the network.
Why is the increasing number of Ethereum Validators important?
Currently, there are over 1,121,810 active Validators on Ethereum, according to updates from July 2024. This number represents a significant increase in the Validator network – nodes that ensure the accurate censorship of transactions and protect the Blockchain from fraudulent activities.
A large number of Validators helps increase decentralization and resilience against attacks while facilitating the stable and efficient operation of the Ethereum network on a global scale.
The sustainable development of the Ethereum network depends on the Validator community and Staking participants, who contribute to securing safety and promoting innovation in the cryptocurrency space.
— Vitalik Buterin, Founder of Ethereum, 2024
How does the ETH Staking market affect the cryptocurrency ecosystem?
The amount of ETH being Staked directly impacts liquidity and the circulating supply in the market. With nearly 29% of ETH locked to create Validators, this is a positive sign indicating investor confidence in the Ethereum network and the long-term growth potential of the platform.
Staking also helps ETH Holders earn passive rewards, incentivizing long-term investment and expanding the DeFi ecosystem, DApps, and Smart Contract-based applications.
What factors drive the growth of Staking and Ethereum Validators?
The main driving factor is the transition from Proof of Work to Proof of Stake in September 2022, which helped the network minimize energy consumption and enhance security. Additionally, attractive staking rewards, the increase in DeFi and DApp applications have also stimulated many wallets and organizations to participate as Validators and Stake ETH.
Ethereum Proof of Stake Network Metrics differ from the ETH Staking Rate of 29% (~35.8 million ETH) Typically fluctuates between 20-40% depending on the network Number of Validators 1,121,810 Ranges from tens of thousands to hundreds of thousands Consensus Mechanism Proof of Stake Proof of Stake or variant
Frequently Asked Questions
Are there any risks associated with ETH Staking?
Low risk if using reputable wallets and platforms. However, ETH is locked for a fixed period and may incur penalties for violating Validator rules.
How to become an Ethereum Validator?
At least 32 ETH is required and a Validator Node must be set up according to the official guidelines from the Ethereum Foundation or a reputable platform.
What is the current staking reward for ETH?
The average reward falls between 4-7% per year, varying with the number of validators and network status.
Do Ethereum Validators affect network security?
The larger the number of validators, the more decentralized the network becomes, reducing the potential for attacks and increasing the stability of the Blockchain.
How does ETH Staking affect the ETH exchange rate?
The locking of a large amount of ETH reduces circulating supply, which could contribute to price increases if demand remains stable.
Source: https://tintucbitcoin.com/ethereum-29-eth-dang-duoc-staking/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated on the latest news in the cryptocurrency market and not miss any important information!
