Ethereum sees sustained validator exits for the first time, with daily active addresses dropping to April last year's level
ChainCatcher news, according to The Defiant, Beaconchain data shows that the number of daily active validators on Ethereum has dropped by about 10% since July, reaching its lowest level since April 2024. This is the first significant decline since the network switched from the Proof of Work (PoW) consensus mechanism to the Proof of Stake (PoS) consensus mechanism in September 2022.
The decline is due to two main reasons: First, this year's Ethereum bull market has led to an unprecedented number of validators exiting the queue, as staking operators rush to unstake and sell for profit.
Second, the decrease in staking yields and the rise in borrowing costs have made leveraged staking unprofitable. Currently, Ethereum's annualized staking yield is about 2.9% APR, far below the all-time high of 8.6% set in May 2023.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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