- The Ethereum Shanghai upgrade allowed Ethereum validators to withdraw staked ETH. But they aren’t doing so. Instead, they are staking more tokens in the Ethereum network.
- Recently, the number of Ethereum PoS validator activity and staked tokens surged to a new level.
Approximately $52.3 billion worth of staking went into the ETH2.0 contract by Ethereum validators. This is the highest value of staking in the Ethereum network, and it is pretty alarming. This new development appears welcomed and, at the same time, odd. To understand better, go through the purpose of the Ethereum Shanghai upgrade.
Ethereum Shanghai Upgrade And Validators
- The Ethereum Shanghai upgrade became a reality so Ethereum validators could withdraw staked tokens. Subsequently, it was the first major upgrade since Ethereum became a PoS network, and it was a success.
- This Shanghai upgrade had a goal, and it was to execute the EIP-4895. On implementing this proposal, Ethereum validators can now withdraw staked Ethereum.
- But the reverse has been the case recently, and it is odd. Instead of Ethereum PoS validators withdrawing staked tokens, they are staking more.
- Because of the increasing number of tokens staked by validators, it recently surged to a new level.
Ethereum Validators Numbers and Staked ETH Increase
According to data from IntoTheBlock, Ethereum recorded the highest value of staked ETH tokens. This is because of the increasing number of Ethereum PoS validators that stake more tokens. This is quite the reverse of the Shanghai upgrade purpose. However, it seems welcomed.
Data showed Ethereum validators deposited a whopping $52.3 billion into the network, which is quite huge. IntoTheBlock called it the highest value the Ethereum network had in staked tokens.
How Many ETH tokens did Ethereum Validators Stake?
According to Glassnode, the number of staked ETH tokens on the network on 21st July was 27.05 million. The staking market cap then was around $52.3 billion, and it was the highest. Even better, the percentage of total staked tokens compared to Ethereum’s total supply was huge. It stood at a whopping 22.46% of Ethereum’s total supply.
To become an Ethereum PoS validator, you must deposit 32 ETH into the ETH 2.0 contract. And when you do this, you qualify to stake tokens and earn the benefits of a validator. Although now, there’s a decrease in the number of staked Ethereum tokens. Coinbase numbers show only 21.5M ETH tokens are staked, with a capitalization of $40.4 billion.
Wrapping up, Ethereum validators are constantly on the increase. Although the numbers have fluctuated occasionally, there’s been a massive increase since the Ethereum Shanghai upgrade. The growth is quite the opposite of the results expected from the Shanghai upgrade. Instead of massive withdrawals, there’s been an increase in staked ETH tokens.
