Ethereum staking revenues fell by 42% in six months: why?

Revenues of Ethereum staking participants have significantly decreased over the past six months. In September, they amounted to $174 million, which is 42% less than the March peak of $247 million. This is reported by the agencyThe Block.

Why profits are falling

The guys who invested ETH in staking to earn passive income are now a bit upset. Revenues have declined significantly over the past six months. In September, the amount was recorded at $174 million, which is 42% less than the peak in March. The reason is simple: a decrease in online activity. By the way, transaction fees have generally fallen to a ridiculous 35.5 million. That is, if staking used to be a gold mine, it is now more like a copper penny.

Let's visualize that you have opened a small shop. At first, people were coming in droves, buying everything, the cash register was ringing. And then suddenly everyone decided to stay home and not buy anything. It's about the same here.

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Ethereum: cheap and angry, but there are still enough validators

In AugustKaiko analysts said that the price of gas on the Ethereum network has dropped to a 5-year low. This is due to the Dencun hard fork, which cut commissions in second-tier (L2) networks by 90%. As a result, the underlying blockchain has become slightly less popular.

• Despite the fact that profits have fallen, the number of validators continues to grow. Over the past year, there have been 30% more of them, and now there are 1.09 million. Participants believe in the long-term success of Ethereum and continue to help ensure its security.

• Last week, Vitalik Buterin, one of the creators of Ethereum, proposed to lower the threshold for joining the ranks of validators. Currently, to become one, you need to put 32 ETH on the line, which is more than $83,000. But Vitalik believes that one ETH will be enough.

• The network maintained a burn rate of 2024.0% until April 06. This made it possible to withdraw 861 thousand ETH from circulation annually. However, the March Dencun hard fork reduced network activity, which meant that both the amount of commissions and the number of coins burned decreased.

CoinGecko analystsreportedIt is noteworthy that in just a few months the number of coins in circulation increased by as much as 112 thousand! And if we take the whole year, the picture is even more interesting. Of course, a lot of coins were burned (465,657 pieces), but even more new ones were produced - 540,958. All in all, the increase amounted to 75,301 coins over the year.

In terms of the number of active e-wallets, Ethereum is not even in the top five blockchains. It ranks 8th with 6 million working wallets per month.

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