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- The Ethereum network has seen a sharp increase in the number of daily validator exits since early October.
- This may be due to the recent rise in the value of Ether.
Ethereums [ETH] The staking pool has seen a shift since early October, with an increasing number of validators choosing to withdraw their staked ETH, Glassnode found in a new report.
According to the on-chain data provider, an average of 1,018 validators have left the proof-of-stake (PoS) network every day since early October.
This trend coincides with the recent increase in the altcoin’s price over the past month, indicating that validators are taking advantage of the opportunity to make profits on their previously staked ETH.
Leaving Validator has network-wide consequences
To serve as a validator on the Ethereum network, a minimum amount of 32 ETH must be staked. Since the rally began in October, there has been a steady decline in the number of unique addresses holding this amount of ETH.
At the time of writing there were 125,189 addresses minimum 32 ETHafter a decline of 1% since October 1.
Glassnode further found that most exits recorded in the past eight weeks were voluntary. Validators are considered to have voluntarily left the network when they independently decide to leave the ETH 2.0 staking pool.
This is different from slash events that cause validators to be removed from the network for violating protocol rules. Only two such events have been recorded in the past two weeks, Glassnode said.
Source: Glassnode
Furthermore, due to an increase in the daily number of existing validators on the network, there has been a corresponding decrease in ETH issuance. This refers to the total number of new ETH coins added to the current supply.
According to the report:
“As the growth rate of validators slows and declines, daily ETH issuance has experienced a corresponding slowdown. Over the past seven days, the ETH issuance growth rate has declined by up to 0.5% per day. It is striking that the rate of issuance has fallen for the first time in recent days.”
Source: Glassnode
How many Worth 1,10,100 ETHs today?
Regarding the entity types that have facilitated the most withdrawals since early October, Glassnode found that centralized exchanges were responsible.
“Centralized exchanges (CEXs) have consistently dominated stock withdrawals since October, with Kraken and Coinbase seeing the largest outflows.”
