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Ethereum [ETH]: PoS network’s performance since FTX collapse reveals…



Ethereum [ETH]: PoS network's performance since FTX collapse reveals...

  • ETH staking and validator count growth remained unaffected as the market grappled with the FTX’s collapse
  • There was, however, a slight fall in daily earnings per validator on the chain

Seventy days since it became operational, the sudden collapse of FTX did not impair activities on the Ethereum proof-of-stake [POS] network. This, according to a report by Glassnode

Read Ethereum’s [ETH] Price Prediction 2023-2024

As per the on-chain analytics platform, the total number of validators on the PoS network totalled 478,658. Since 6 November, 16,490 active validators have joined the network, with the validator count now up by 4%. These new validators deposited 32 ETH to the ETH 2.0 smart contract as a prerequisite to be a validator on the chain.

Also, since CZ first tweeted about the state of things on FTX, which led to its unexpected collapse, total ETH staked has rallied by 3%. At the time of writing, the total ETH staked was 15.23 million ETH.

Since the Merge on 15 September, the count of total ETH staked ahead of the Shanghai upgrade has gone up by 13%. 

Source: Glassnode

To keep the PoS chain running, a portion of the total ETH staked is actively participating in the consensus on the chain. This is referred to as Effective Balance.

At press time, the Effective Balance on the Ethereum PoS chain was 14,188,772. Since FTX’s collapse, this has also appreciated by 3%. In fact, the Effective Balance seemed to be over 12% of ETH’s Total Supply.

Source: Glassnode

Signs of trouble?

The validators on the Ethereum PoS network are automatically organized into sets of committees and block proposers for each 32-slot Epoch.

In each committee, a validator is responsible for producing blocks for each 12-second slot. On the rare occasion that this validator is unavailable, a block is missed, and the count is registered on the chain. 

Furthermore, according to Glassnode, since 6 November, there has been a spike in the number of missed blocks on the PoS network. As of 23 November, 56 blocks were missed on the network – Leading to a 75% rally in the count of missed blocks since CZ’s first tweet.

Source: Glassnode

Additionally, the network’s participation rate also slipped to touch 98% on 15 November for the fifth time since the Merge.

For instance, data from OKLink also revealed that the average daily earning per validator on the PoS network has remained stuck at 0.0036 ETH since 6 November. For context, the average daily earning per validator three months ago was 0.0039 ETH.

Source: OKLink

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Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.

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