Connect with us


Ethereum’s future hinges on validators amidst declining interest and market trends



Ethereum's future hinges on validators amidst declining interest and market trends
Source: Unsplash

  • Ethereum network’s validator numbers remained steady despite bear market.
  • Decreased whale interest, network growth, velocity, and trader sentiment raised concerns.

Validators on Ethereum [ETH] could play a significant role in the network’s future. New data on 6 February suggested that the number of new validators added to the network remained constant in 2022, even during the bear market.


Is your portfolio green? Check out the Ethereum Profit Calculator

Thus, there was interest amongst stakers, even in a volatile market. The upcoming Shanghai Upgrade was expected to further incentivize new validators to join the network.

Recent validator interest could be driven by the positive developments surrounding Ethereum.

Looking at the positives

A positive indicator for Ethereum was the declining number of addresses in loss, reaching a five-month low according to Glassnode.

However, despite this positive news, whale interest decreased over the last month. If large addresses decided to sell their investments, it could negatively impact retail investors.

Source: glassnode

Having a look at Ethereum, on-chain

Ethereum’s declining network growth could be one reason for the decrease in whale interest, as there was a cutback in new addresses transferring ETH for the first time. This suggested that new addresses were not showing interest in the network.

Source: Santiment

Another reason for the lack of whale interest could be the decline in Ethereum’s velocity, meaning that the frequency of ETH trades decreased.

Additionally, trader sentiment also turned negative during this period. Short positions against Ethereum increased, according to Coinglass. This surge in short positions increased after 1 February. At press time, the percentage of short positions against ETH was 51.57%.

Source: Coinglass

Even though traders were pessimistic about Ethereum, a new development with Visa could improve the network’s odds of success. As per a 6 February tweet, Visa was using the Ethereum network to test USDT transactions.

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

The aforementioned partnership could help increase Ethereum adoption and improve sentiment among traders and whales.

Overall, the number of validators on the network and their continued growth, despite market volatility, suggested a promising future. The Shanghai Upgrade and Visa’s partnership are key indicators to watch out for, as they have the potential to positively impact the king altcoin’s adoption and its overall future.

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.

Please select your Email Preferences.

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.