Ethereum Network Recovers: Active Validators Rise, Missed Blocks Drop
Ethereum: Active Validators Recover After ETF Turmoil
After a period of decline, the number of active validators on Ethereum has risen again. Prior to the approval of the Bitcoin Spot ETF, the number of active validators on Ethereum fell. The network’s participation rate, which had fallen before the ETF approval, has risen.
Details on the Development of Validators
The number of active validators in the Ethereum [ETH] Proof-of-Stake (PoS) network has seen a significant increase in the past week. This follows a decline prior to the approval of the Bitcoin [BTC] Spot Exchange-Traded Fund (ETF), according to data from Glassnode.
Information from the on-chain data provider showed that the number of active validators in the Ethereum network fell from 906,470 to 895,784 from January 4 to January 12. The decline began one day after crypto investment service provider Matrixpot published a report predicting that the U.S. Securities and Exchange Commission (SEC) would reject all Bitcoin ETF applications.
Causes and Effects of the Decline
Many feared that this prediction could come true, leading to a drop in asset prices and causing liquidations of over $500 million. In the Ethereum network, the voluntary exit of validators rose to an all-time high of 17,821, and the number of validators participating in the verification of transactions on the chain fell.
However, this decline has stopped since January 12. On January 20, there were 904,754 active validators in the Ethereum network, representing a 1% increase from the previous low.
State of the PoS Network
The number of missed blocks reached a yearly high of 115 blocks on January 6. This was due to the increase in validator exits and some validators taking their nodes offline while the market waited for the SEC’s decision on the BTC ETF applications.
A block is considered missed if the validator responsible for generating blocks for each 12-second slot is not available. Since the increase on January 6, it has dropped by 76%. On January 20, only 27 blocks were missed.
Recovery of the Participation Rate
Due to the unavailability of a significant number of validators on the Ethereum chain on January 6, the network’s participation rate fell to a four-month low of 98.94%. As the validators came back online, this rate increased and stood at 99.59% at the time of reporting.
According to Glassnode, a high participation rate indicates reliable availability of validator nodes, and thus fewer missed blocks and higher block space efficiency. At the time of writing this article, the total number of validators in the Ethereum PoS network was 1.17 million. So far this year, the number of validators on the chain has increased by 4%.