The Ethereum ecosystem recorded a new record in staking rewards with revenue from $46 million generated by validators in just one week. This increase is due to an increase in the staking reward as well as the popularity of memecoins like Pepe.
The increase in Ethereum staking rewards
Ethereum validators received a record amount of $46 million of staking rewards during the first week of May. This is explained by an increase in the staking reward which is an indicator of the annual yield of validators.
This increase represents a 40% increase compared to the previous week, in which validators received 18,339 ETH as a reward.
To participate in the PoS (proof of stake) consensus process of the Ethereum network, validators must “stake” (i.e. deposit) a minimum of 32 ETHor about $58,000 at the current price.
Validators have two types of rewards:
1. Consensus rewards for block attestation and validation
2. Transaction fees (gas fees) for processing transactions on the Ethereum network
The popularity of memecoins like Pepe
The growing popularity of memecoins like Pepe or $Sponge is also one of the reasons for the increase in staking rewards. Over the past week, the average fee on the Ethereum network has exceeded 100 gweimarking the highest level since May 2022. Users are now paying over $30 per traderesulting in increased fees for validators.
As a result, validators have recorded additional revenue on top of staking rewards by processing transactions. The result is an increase in the overall income of validators on the Ethereum network.
The increase in Ethereum staking rewards is a good news for validators who see their annual return increase. This increase is partly due to the increase in transaction fees on the Ethereum network and the growing enthusiasm for memecoins. These events highlight the importance of staking in the Ethereum ecosystem, as well as the revenue potential it can generate for participants.