The line to become a new Ethereum validator is now the longest it’s been since early October.
People are becoming more interested in staking because the amount of money you can make from staking ether is still under 4%.
There are more people joining the Ethereum network to stake their ether.
The waiting list for validators is now 7,045, the highest it has been since October. 6, based on information from ValidatorQueue. The list of people waiting is very long, with over 225,000 people hoping to get their money back. It is expected that everyone on the list will get their money within the next two days.
Ethereum only allows a certain number of new validators to join the network at a time, and it also controls how quickly blocks can be processed on the blockchain. This causes a buildup of work that needs to be done. An Ethereum epoch lasts for 6. 4
Validators are people who put at least 32 ether into the network to help run Ethereum’s proof-of-stake blockchain. By putting their ether as a stake, they get a regular return that is similar to the interest earned from bonds.
“Ethereum staking activity is picking up again, which shows that it’s getting more active,” said David Lawant, who leads research at FalconX, a crypto exchange for big investors. He said this in an email on Friday.
Lawant said that the increase in the number of people waiting to start using something is important, because the amount of money earned from staking ether hasn’t gotten any better.
It combined ether staking rate has stayed around 3. 5% to 4% for the last four months, which is only slightly higher than the risk-free rate of 4. 17% on the 10-year U. S government bond Government also borrows money by issuing Treasury notes.
Although more people want to join the network, the total number is still lower than the 75,000 seen last year after Ethereum’s Shapella upgrade. The Shapella upgrade let people take out their staked ether for the first time, making it safer to lock up coins and get rewards.
In early January, there was a sudden increase in the number of validators wanting to withdraw from the waitlist. This happened after crypto lender Celsius announced that they were planning to unstake all of their ether.
Ether is not as popular or as valuable as bitcoin.
Ether went up by almost 10% last week, but it didn’t do as well as bitcoin, which went up by 14. 5%.
Traders are not buying ether aggressively because they are not sure if U. S-based spot ETFs will be launched soon and they need clearer rules from the SEC about ether.
Lawant says that everyone is waiting to see if they can put their coins into potential ETH ETFs.
“Ark/21Shares made changes to their document to add a staking feature this week. ” Lawant stated that the changes to the S-1 document in the next few months before May 23 will show if it is a real possibility.