Validators had total revenue of $46 million in the first week of May as a result of the increase in the staking reward rate, which is a metric for annualized validator performance. According datavalidators earned 24,997 Ether (ETH) for the week, which is a 40% increase from the previous week’s revenue of $33 million, when 18,339 ETH were distributed as rewards.
The recent trend of a new memecoin called Pepe trading is the reason behind the gratitude of the validators. Last week, average fees on the Ethereum network topped 100 gwei, marking the highest level since May 2022. As gas fees rise, end users are paying more than $30 per exchange. The increase in gas fees has resulted in higher fee revenue for validators for transaction processing, in addition to their regular validator rewards.
Beaconcha.in claims that the current engagement rate represents the anticipated annualized return for validators. To participate in the network’s consensus procedure, Ethereum validators must stake a minimum of 32 ETH, valued at approximately $58,000.
There are two types of rewards identified by ETH Store, a company that measures reward rates: consensus rewards for proposing and certifying blocks, and transaction fees for processing transactions on the Ethereum network.
Related: It’s worth it? Trader spends $120K on gas buying $155K worth of memecoin
Since the Ethereum network moved to a proof-of-stake (PoS) consensus mechanism with The Merge last year, and following the recent Shapella update that allowed validator withdrawals for the first time, ETH share has gained significant importance among institutions.
Magazine: Joe Lubin: The truth about the separation of the founders of ETH and ‘Crypto Google’
