The 32 Ether Club Keeps Growing Ahead of Ethereum 2.0 Launch

BlocDesk ethereum 2.0 32 Ether Club

Big changes will be coming to the Ethereum ecosystem in the near future. Dubbed as “Ether 2.0”,  it will introduce staking support, sharding, and so forth. This is part of the reason why so many people are eager to obtain at least 32 Ether as of late. 

Why 32 Ether Matters

For those unfamiliar with the upcoming Ethereum 2.0 changes, a brief explanation is in order. A big part of the network upgrade is how Ethereum holders will be able to earn staking rewards. There is no minimum threshold of ETH required  for doing so, thus it is likely that many people will begin exploring this option. 

For those with slightly bigger holdings, however, owning 32 Ether is a crucial threshold. With this amount of Ethereum, it becomes possible to become an official Ethereum validator.  Every validator is paid to perform specific network rules and provide extra security. 

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On paper, Ethereum only needs a certain amount of network validators. For the chain to begin, at least 16,384 validators are required. Interlinking individual shards will increase this number to at least 262,144 validators. Reaching that threshold will ensure nearly 8.4 million ETH is staked on the network via these nodes alone. 

Rewards for validating network rules will heavily depend on the total amount of ETH staked. Less funds being staked will yield higher return rates per validator. As the total network state increases, rewards will decrease.  This concept has attracted a lot of attention lately, by the look of things.

Growing Interest in Validators

Judging by the Glassnode statistics, there is a strong increase in Ethereum addresses holding at least 32 Ether. Whether this means everyone wants to run a validator, is a different matter altogether. Ethereum has proven to be a solid investment throughout 2020. As prices have begun to drop slightly, investors are showing an increasing interest. 

BlocDesk 32 Ether Club
Source: Glassnode Stuios

Assuming all of these addresses will become validators, things are looking good. Reaching the minimum threshold to kick off the Ethereum 2.0 chain will not pose any real problems.

In fact, it shows that there will be an excess of some sorts. For the network, this is a very healthy sign. Those with high hopes of striking it rich as a validator may want to rethink their strategy.

The big question is whether the 32 Ether club will keep growing. It is understandable that people want to explore the new options. Moreover, the chance of earning rewards will always be appealing. The launch of Ethereum 2.0 draws nearer every day,