Ethereum 2.0 node count drops to a one-month low as ETH price climbs to new heights

The plunge points at a growing lack of interest among traders and investors to become "full validators" on its upcoming proof-of-stake blockchain. The number of Ethereum addresses holding 32 or more Ether (ETH) reached a one-month low on Nov. 9.

The number of externally owned Ethereum accounts (EOAs) holding at least 32 ETH fell to 108,949 compared to 108,965 on Oct. 22, according to data from Glassnode, a sign that traders and investors ignored the prospects of becoming validators on its upcoming proof-of-stake blockchain, dubbed Ethereum 2.0.

In detail, staking in Ethereum 2.0 requires users to deposit 32 ETH into a designated smart contract address to become a full node validator. In doing so, the depositor gains the right to manage data, process transactions and add new blocks to the upgraded ETH blockchain. That prompts Glassnode analysts to treat the Ethereum addresses with a balance of 32 or more ETH tokens as "potential validators."

Wealthy Ethereum validators only

The recent decline in the number of potential Ethereum 2.0 validators coincides with a steady Ether price rally.

Notably, ETH price surged almost 37% in the last 30 days, hitting a record high around $4,842 on Nov. 8. In other words, it now costs more than $153,000 to become a full node validator on the Ethereum 2.0 blockchain versus about $23,600 at the beginning of this year.

Meanwhile, data from StakingRewards.com shows that locking up 32 ETH for one year now returns an annual percentage yield of 5.42%.

In contrast, holding spot ETH positions have returned almost 1,000% paper returns in the past 12 months, with the flexibility of profit-taking against potential downside risks.

ETH to $6K?

The number of Ethereum 2.0 validator addresses has also dropped as Ether prepares for a run-up towards $6,000.

The cryptocurrency's latest climb to a record high of approximated $4,842 comes as a part of a Cup and Handle breakout that expects the ongoing bullish momentum to continue towards or beyond $6,000

source : https://cointelegraph.com/news/ethereum-2-0-node-count-drops-to-a-one-month-low-as-eth-price-climbs-to-new-heights