After the next Shanghai network update, Ethereum validators will soon be able to withdraw their staking earnings.
According to data from BeaconScan, the number of Ethereum (ETH) validators has reached 500,000 ahead of March’s scheduled Shanghai upgrade.
A validator secures a proof-of-stake (PoS) blockchain by validating transactions on the network and preventing double-spending issues, among other activities.
To use validator software in Ethereum, you need to be able to put up 32 ETH, which at current prices is worth about $50,000. The validator milestone is reached as Ethereum’s core developers prepare to implement the so-called Shanghai update, which is scheduled for March.
After this update, validators will finally be able to take out the ETH they have staked and the rewards they have earned so far. There will be a daily withdrawal limit of 43,200 ETH based on the total amount of staked ETH in existence. According to Etherscan, this total currently hovers around 16 million ETH.
This is not the only factor that could be contributing to the rising number of validators. The popular cryptocurrency wallet MetaMask has recently released a new staking feature, allowing users to stake Ethereum utilizing liquid staking protocols like as Lido and Rocket Pool.
Lido and Rocket Pool allow users stake less than the required 32 Ethereum to participate. In exchange for their deposits, they received liquid staking derivative tokens, called LSDs, which can be utilized to earn more awards in DeFi.
In light of these events, ETH has achieved a strong performance over the last week, increasing 18.3% according to CoinGecko.