• Ethereum validators increased by over 30% in the past year, exceeding 1 million for the first time in June 2024
• The rise in validators is attributed to growing institutional interest driven by developments in restaking and liquid staking protocols
• Staking activities are also growing on other blockchains like Polygon’s PoS network, with a 364% increase in wallets involved in staking over the past year
The number of Ethereum validators has increased significantly over the past year, indicating growing institutional adoption of crypto. This growth is being driven by developments in restaking and liquid staking protocols, which provide capital efficiency benefits to institutions.
Growth in Ethereum Validators
The total number of Ethereum validators rose by over 30% in the past year, exceeding 1 million for the first time in June 2022. This growth coincided with key events like the Shanghai upgrade and the approval of the first Ethereum ETFs. The rise of restaking has attracted institutions interested in enhanced capital efficiency through leveraged yields.
Increase in Staked Ether
In tandem with the validator growth, the amount of staked Ether also grew substantially, increasing by over 27% to surpass 347 million staked ETH. This growth was fueled by the aforementioned catalysts of the Shanghai upgrade and Ethereum ETF approvals.
Rising Staking Activities on Polygon
Ethereum’s growth mirrors an increase in staking across other chains like Polygon. Polygon staking wallets grew over 364% despite a validator cap, suggesting cross-chain validator growth remains strong. Participants seem undeterred by potential reduced staking returns.
Conclusion
The significant rise in Ethereum validators and staked Ether over the past year points to surging institutional interest spurred by capital efficiency gains from staking derivatives like liquid staked tokens and restaking. This growth has extended across chains, highlighting the continued mainstream adoption of crypto staking activities.
