Thus, since early October, more than 1,000 Ethereum validators have left the network deliberately. These aren't malicious or incompetent validators that the network is punishing for improper behavior. These people are freely departing. Why, then, would they act in this way? It's usually just the nature of the market. They aim to seize the opportunity presented by the rise in Ethereum's price. They want to make a lot more money from the sale of their Ethereum than they may by actually staking it.
Impact on Staking Returns:
Ethereum Price Chart from October to December (
Is this a positive or negative thing? As you may already be aware, if you have been staking Ethereum for some time, the greater the number of staking users, the lower the percentage return (APY) that you will receive. In the event that you continue to stake, your proportion will rise when these addresses depart. These are the market dynamics, then.
Market Dynamics and Staking Rewards:
Staking Process (
As more people stake in Ethereum, the percentage of your rewards goes down, meaning that if the price of Ethereum is increasing at the same time, there’s more opportunity to cash out and drive people away. But if you’re still staking and you’re going to be holding long-term anyway, you’re going to benefit from this. The percentage you’re going to earn from staking will increase because there are fewer stakes for that reward to be distributed amongst. So, there’s your tidbit of good news.
SEC's Actions and Consequences
SEC Courtroom (
There’s a US judge who wants to sanction SEC lawyers for forcing a crypto firm to freeze their funds due to misinformation and false claims. So, as much as the SEC wants to play like they’re the good guys and they’re trying to act and get rid of the bad actors in the cryptocurrency space, they’re actually doing the opposite. They’re doing themselves a disservice, and every day we’re seeing the truth of what’s happening with the SEC.
So, let's see what happens here and how that develops.
Disclaimer:
None of the articles provide financial advice. Articles are summarized to make it easy for the reader and save your time, so please do your own research further before putting your hard-earned money into any product mentioned.
