The rush to become a validator on Ethereum has slowed as mainnet activity remained flat throughout the third quarter.
The latest data shows that Ethereum’s validator queue has been completely emptied for the first time since the Shanghai upgrade in May, which introduced withdrawing ETH deposits for network validators.
According to last week’s research report from Coinbase, staking yields on Ethereum have dropped from over 5% to the current 3.5% during the past few months. This indicates that the demand for ETH rewards remains lower compared to the pre-Shanghai period.Â
The ETH staking yield is a base for the whole DeFi ecosystem, as most of the protocols utilize ETH in their products and generate revenue from the staking yields.
Coinbase’s report states that Ethereum mainnet activity has remained flat in the 3rd quarter of this year, while the total of rollup transactions from layer 2 chains has increased significantly.
As the Ethereum network will not undergo any major changes before the Dencun upgrade next year, there is no such factor that could significantly boost the mainnet’s activity. Hence, the current stance may remain the same throughout the first quarter of 2024 until any major network upgrade takes place to boost onchain activities.
Also Read: ProShares Is Set To Launch Inverse Ethereum Futures ETF
