Last Updated on May 10, 2023 by Bitfinsider

The increase in the staking rewards rate, a metric for the annualized yield of validators, resulted in a total revenue of $46 million for validators in the first week of May. Data indicates that validators made 24,997 Ether throughout the week, up from the previous week’s earnings of $33 million, when 18,339 ETH were given out as prizes.

The recent popularity of a new memecoin called Pepe trading is what has validaters so appreciative. The average costs on the Ethereum network have surpassed 100 gwei during the previous week, which is the highest amount since May 2022. Users are spending over $30 each swap as petrol prices rise. In addition to their regular validator incentives, validators are now earning more money processing transactions due to the increase in gas prices.

According to beaconcha.in, the current stake rate is the expected yearly return for validators. Validators on Ethereum are required to stake a minimum of 32 ETH, or about $58,000, in order to participate in the network’s consensus process.

The firm measuring reward rates, ETH Store, has discovered two categories of incentives: transaction fees for handling transactions on the Ethereum network and consensus rewards for proposing and attesting blocks.

Since The Merge, which changed Ethereum’s network to a proof-of-stake (PoS) consensus method, and the subsequent Shapella upgrade, which made validator withdrawals possible for the first time, ETH staking has grown significantly in importance among institutions.