The Ethereum network has achieved a significant milestone, reaching one million validators. Currently, there are 32 million Ether (ETH) staked on the network, valued at around $114 billion based on current market prices.
According to the Dune Analytics dashboard created by Hildobby, the validator count reached one million on March 28. The 32 million ETH staked represents 26% of the total supply. Additionally, approximately 30% of the staked ETH is held in the Ethereum staking pool called Lido, which is a liquid staking platform for proof-of-stake (PoS) cryptocurrencies. Staking pools like Lido are popular because they allow users with smaller amounts of ETH to pool their assets and participate.
Validators play a crucial role in ensuring the security of the blockchain by monitoring the network for any malicious transactions, such as double-spending. In Ethereum, validators are involved in proposing and validating transactions within the network. To participate in this process, individuals are required to stake 32 ETH and are rewarded with a small portion of ETH.
While having a large number of validators can enhance the security of a blockchain, some members of the Ethereum community believe that there may be too many validators. Venture investor and Ethereum advocate Evan Van Ness expressed the opinion that there is “too much” staked already. Gabriel Weide, who operates a staking pool, believes that an excessive number of validators could potentially lead to “failed transactions.” Peter Kim, the head of engineering at Coinbase Wallet, acknowledged the impressive number of validators but noted that it is artificially inflated by the 32 ETH cap. However, he suggested that this may change in the future.
Ethereum co-founder Vitalik Buterin has proposed a solution to improve the network’s decentralization as the number of validators continues to rise. In a recent blog post, Buterin suggested penalizing validators proportionally to their average failure rate. This approach aims to reduce the advantage of large ETH stakers over smaller ones.
Overall, Ethereum’s achievement of one million validators marks a significant milestone for the network. As the ecosystem continues to evolve, efforts to enhance security and decentralization are being explored by key figures within the community.