#Suiss prepare for #Eth #Etf

Blockchain report

A look at Ethereum staking

Ethereum since the merge

However, Ether is likely to be interesting for investors not only because of the foreseeable spot ETF speculation. The largest smart contract blockchain is constantly developing and its network is becoming increasingly extensive. More and more scaling solutions are going live on Ethereum, enabling the system to scale ever better.

A little over a month ago, the Ethereum community also celebrated the 1-year anniversary of the merge. This means the switch from Proof-of-Work (PoW) to Proof-of-Stake (PoS). With the change, Ethereum stopped mining and from then on relied on validators who maintained the network and added transactions to the Ethereum blockchain.

Since the merge, the picture of validators has changed dramatically as more and more staked Ether have been added. There are now 869,310 validators (October 2023), and this number is expected to increase to one million by the end of 2023. Now that the uncertainties surrounding Ethereum staking are continually decreasing in public perception, more and more investors want to have their Ether staked.

The Ethereum blockchain is ultimately the biggest beneficiary of more and more staked Ether, as this means more and more entities are ensuring the security of the Ethereum blockchain. However, as the number of staked Ethers increases, the returns for individual validators become steadily smaller, as the rewards in the form of newly created Ethers have to be divided among more validators. This means that the profitability of staking after the merge and the Shapella update (the upgrade , which made obtaining staked Ether possible for the first time) has fallen from the perspective of an individual staker. At the same time - and this is just as crucial from an investor's perspective - the profitability of the staked Ether depends on the Ether price in US dollars. more--> www.payoff.ch/news/ein-blick-auf-das-ethereum-staking