Ethereum Validators Earned $2 Billion in Staking Rewards Since 2021
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The Ethereum network has been making headlines lately, and for good reason. Ethereum validators have earned an impressive $2 billion in staking rewards since January 2021, according to Delphi Digital data. That’s enough to make anyone want to jump on the staking bandwagon!
Validators began staking after the launch of the Beacon Chain, and their rewards have been steadily increasing as more validators join the network. The validators’ count grew by over 67,000 in the first 90 days of 2023 alone. At the start of the year, there were around 495,000 validators, but that number has now increased to 562,236.
Despite concerns about over-centralization and censorship risks, the concentration of validators among five entities hasn’t caused any problems. In fact, the number of OFAC-compliant blocks on the network has decreased since February, proving that the Ethereum network is well-equipped to handle the increasing number of validators.
Ethereum Holders Opting for Self-Custody in Their Droves
With over 18 million ETH tokens, representing 15% of ETH’s total supply, staked, the network has been gaining more interest recently. The upcoming Shanghai upgrade, which will allow validators to withdraw their tokens, has sparked further excitement and interest in the network.
In addition to the staked ETH on the Ethereum network, there are also nearly 8 million staked ETH tokens on liquid staking platforms, cumulatively worth $14.5 billion.
As more holders opt for self-custody, the ETH supply on exchanges has dropped to its lowest volume in nearly six years. Blockchain analytics firm Santiment reported that there’s only 10.31% of existing ETH on exchanges, reflecting growing trust in blockchain technology.
But let’s not get ahead of ourselves. While the Ethereum network continues to grow, the concentration of validators among just a few entities remains a significant issue. Nevertheless, Ethereum’s progress towards the Ethereum 2.0 upgrade and the improvement of network efficiency are likely to contribute to its continued growth and expansion.
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