07/03/2023
203 CommentsEthereum Validator Queue Hits Highest Level Since September 2023
As restaking gains popularity in the DeFi space, Ethereum validator queues hit their highest level since September 2023. Leading restaking protocol EigenLayer launched on Ethereum mainnet last week along with its EigenDA data availability layer. Coinbase Cloud and Google Cloud are among the protocol’s first node operators, and they announced six AVSs (Actively validated services) that will be secured through EigenLayer restaking. This launch opened the door for restakers on the platform to start earning additional returns on their staked ETH. Despite not being able to earn any returns before, users rushed to deposit funds into the protocol in anticipation of higher returns and speculation about a potential airdrop. The first step to using EigenLayer is to stake ETH. Users can do this themselves by creating a validator or can do it through a liquidity staking protocol.
Since one of the main ways to access EigenLayer is to contribute to Ethereum security, the network has recently seen an increase in new validators. Ethereum completed The Merge upgrade in September 2022, converting the network to Proof-of-Stake. Prior to The Merge, users were allowed to create validators on the Beaconchain, which ran parallel to the Ethereum mainnet. But staking really took off after the Shapella upgrade, which took place in April 2023 and allowed staked ETH to be withdrawn. The withdrawal feature gave some people peace of mind that their funds were safe and could be retrieved. There has been a large number of validators wanting to join the Ethereum network. The validator queue reached 96,000 in June 2023. The validator entry queue is essentially there to ensure stability in the Ethereum network and prevent too many validators from coming online (or leaving in the event of a queue drain) in a single epoch. But over time, the queue has become more fluid as the demand to become an Ethereum validator has slowed. The queue remained below 10,000 from October 2023 until the end of March of this year. But now, as more and more people try to join the restaking craze, the validator entry queue has grown to 20,000, signaling a strong need for network security.
