The Influence of Celsius on ETH Validator Waiting Time
Validators are crucial components of the Ethereum network, playing a vital role in maintaining the network’s security and integrity. However, becoming a validator on the network requires a significant investment in both time and resources. With the recent increase in demand for staking on the network, the waiting time to become a validator has been steadily increasing. This article explores the impact of the bankrupt crypto lending platform Celsius on the waiting time to become an ETH validator.
Understanding ETH Validators
Ethereum validators are responsible for verifying transactions and adding them to the blockchain. Unlike the Bitcoin network, where miners add new transaction blocks, Ethereum validators transfer them. Validators participate in the network’s consensus mechanism, ensuring that the blockchain remains secure and decentralized. To become an ETH validator, a participant must have 32 ETH to stake on the network and operate a validator node. This investment ensures that validators have a financial stake in the network’s continued success.
Waiting Time for ETH Validators
The waiting time to become an ETH validator has been steadily increasing due to the network’s growing popularity and demand for staking. In May 2021, the total waiting time was just over 27 days. However, this time has increased significantly, primarily due to various factors, including the recent restructuring of Celsius.
Celsius’s Role in ETH Validator Waiting Time
Celsius, a bankrupt crypto lending platform, has added to the backlog of ETH staked and waiting to be withdrawn, increasing the waiting time for new validators. The platform has staked 396 thousand ETH on the Ethereum network, with 198 thousand allocated to Figment, a non-custodial institutional staking service. The remaining ETH holdings are used in a private staking pool.
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Celsius has also withdrawn more than 428 thousand ETH from liquid staking provider Lido, worth over $800 thousand at current ETH prices. The platform is still waiting to withdraw the remaining 32 thousand ETH from Lido. As a result of the significant amount of ETH staked by Celsius, the total waiting time to become an ETH validator has ballooned to 46 days and 9 hours.
The popularity and demand for staking on the Ethereum network have resulted in increased waiting times for individuals interested in becoming validators. The impact of Celsius, a bankrupt crypto lending platform, cannot be ignored, as its significant staking of ETH has contributed to a backlog of staked ETH waiting to be withdrawn. While the waiting times may deter some potential validators, it is crucial to recognize that the investment not only helps to secure the network but also provides an opportunity for passive income generation.