The Ethereum network has made a significant shift from Proof-of-Work to Proof-of-Stake consensus algorithm. This has led to the elimination of Ethereum miners, now replaced by validators who secure the network. Becoming a validator is a simplified process, requiring depositing 32 ETH into the staking contract and running the appropriate software.
Validators Queue Up
However, the process of becoming a validator is not as simple as it seems. There is a long queue for validators, which means that it may take some time to become one. According to data from WenMerge, there are currently 92,536 validators waiting to enter the network, and it will take about 45 days to clear the queue. The competition is so high that the number of validators waiting to exit the network is only four.
Celsius Network’s Role
One of the reasons for the long queue is the involvement of Celsius Network, a cryptocurrency lender. Celsius Network has moved around $600 million worth of ETH into the staking contract in the past few days, and this rate is not expected to slow down. According to Arkham Intelligence, this constitutes around 316K ETH added to the validator enter queue at current prices.
The Importance of Validators
Validators play a crucial role in securing the Ethereum network and are rewarded for their work. They validate transactions and create new blocks, ensuring that the network is secure and efficient. By investing in securing the network, validators contribute to the overall growth and stability of the Ethereum ecosystem.
The shift to Proof-of-Stake has led to an increase in demand for validators on the Ethereum network. With the long queue of validators waiting to enter, it is clear that the process of becoming a validator is not as simple as it seems. However, the importance of validators in securing the network cannot be overstated, and investing in securing the network contributes to the growth and stability of the Ethereum ecosystem.