Ethereum reaches 1 million validators, but not everybody is happy
The cryptocurrency Ether (ETH) hits the one million validator milestone with 32 million Ether currently staked. This 32 million is valued at around $114 billion according to current market prices.
According to one report on Cointelegraph “the network achieved a validator count of one million, with the 32 million ETH staked accounting for 26% of the total supply.”
The CEO of BlackRock, Larry Fink, caused a surge in the price of Ethereum this week after his comments on a recent interview panel. Fink said that designating ETH as a security won’t be “deleterious.”
After Fink’s comments, the value of Ether would rise to $3,658. We covered BlackRock’s application for an ETH exchange-traded fund last year.
Ethereum reaches landmark
The staking platform Lido saw 30% of the total ETH in play and allows investors in the cryptocurrency to stake in smaller amounts as part of a collective.
This collective then takes part in the staking process (which has a maximum effective staking 32ETH limit) and their presence helps to approve transactions. For playing their part these validators get a small reward in the shape of ETH.
Not all onlookers are happy to see the number of validators increase as they believe it could bring issues with transactions. Investors such as Evan Van Ness took to X to share his concerns on the increase in the number of validators:
Definitely not, arguably already too much staked
— Evan Van Ness (@evan_van_ness) March 27, 2024
Gabriel Weide, who runs a staking pool, responded to Van Ness’ post saying that too many validators can lead to “failed transactions.”
The Securities and Exchange Commission (SEC) has tabled several legal challenges against cryptocurrency operators for their practices. Ethereum isn’t escaping this scrutiny as we reported earlier this month.
SEC Chairman Gary Gensler has been vocal about his and the regulator’s stance on cryptocurrency operators, speaking recently at Columbia Law School saying “There are participants in crypto securities markets that seek to avoid these (SEC) registration requirements. No registration means no mandatory disclosure. Many would agree that the crypto markets could use a little disinfectant.”
The SEC is currently locked in legal battles with Coinbase, which is set to move to a trial date. U.S. District Judge Katherine Polk Failla wrote that “the Court finds the SEC has sufficiently pleaded that Coinbase operates as an exchange, as a broker, and as a clearing agency under the federal securities laws, and, through its Staking Program, engages in the unregistered offer and sale of securities.”
As we reported last week, the government regulator is also seeking $2bn penalties from Ripple Labs.
Image: Ethereum.
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