Ethereum Validation Queue Ends Amid Declining Staking Demand

  • Ethereum validation queue at an all-time low.
  • Betting demand is falling as waiting times plummet.
  • At press time, the entry queue for Ethereum had only 377 validators.

The Ethereum network’s validation queue once filled with applicants wanting to participate in the blockchain’s proof-of-stake system has reached an all-time low. The data reveals that the queue is down to just 598 validators, a stark contrast to the staggering peak of 96,000 seen in early June.

This significant reduction in the validation queue marks a notable development in the Ethereum ecosystem, as it has not been so empty since the major “Shapella” upgrade in April, which finalized Ethereum’s transition to a fully functional proof-of-stake network.

Betting demand decreases

The shrinking validation queue is indicative of declining staking demand on the Ethereum network. At its peak, people seeking to become validators faced a daunting 45-day wait due to pent-up demand to stake Ethereum’s native token, ETH.

But since Thursday, the expected wait time for a new validator to be added to the network has plummeted to less than four hours, according to data from Validation queue. This rapid decline reflects a change in the staking landscape following the Shapella upgrade, which allowed the withdrawal of staked ETH for the first time, reducing risk for investors.

Shapella’s upgrade had initially sparked a surge in staking activity on the Ethereum network, with ETH staking growth described as “extremely strong” following Ethereum’s move to proof-of-stake in September 2022. However, the initial fervor seems to have died down. has recently reduced times.

The drop in staking demand has resulted in a drop in staking rewards, which have fallen from 5%-6% earlier in the year to around 3.5%. This is partly due to lower fees for setting up network activity and an increasing number of participants.

Compared to other prominent proof-of-stake networks, Ethereum’s stake ratio, which measures the share of stakes staked relative to the total supply, has increased to over 22% since April. However, it still lags behind competitors like Solana, Cardano, and Avalanche, with stake ratios ranging from 53% to 69%.

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