Demand for Ethereum steaking has dropped significantly recently: what’s the reason?

At the moment, the second largest cryptocurrency, Ethereum (ETH), is being used less and less frequently for staking. This development in turn leads to a decrease in the number of validators.

This is despite the fact that back in April (against the backdrop of the launch of the Shapella update) there was a significant interest in the process of cryptocurrency stacking among market participants. According to experts, this was also influenced by the introduction of the Proof-of-Stake (PoS) protocol in the Ethereum network. As a result, a peak of interest was recorded at the time, and the number of validators exceeded 96,000.

However, it is now safe to say that the validator queue has emptied out – there are currently only 257 objects in it. This is the lowest number since the network transitioned to PoS.

The dramatic reduction in the number of validators has finally led to the fact that it is now possible to obtain such status much faster. According to statistics, today it takes less than five hours.

However, while the demand for ETH staking continues to decline, projects such as Bitcoin Minetrix and Meme Kombat are attracting more and more attention from investors. Both startups are currently in the pre-sales stage. They have the potential to bring big profits to the owners. In addition, due to the steaking element, the projects open up access to additional features on the platforms.

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Bitcoin Minetrix

Bitcoin Minetrix stands out among many other new startups on the market by providing access to cloud mining through steaking. The project raised over $2.2 million at the pre-sale. Its value is $0.0112, but it will rise again in a few days.

The developers presented to the attention of the community a complex cryptoproject, which is based on two interrelated mechanisms – steaking and cloud mining. Under the first technology, users can earn bonus ERC-20 tokens, which are not exchangeable. However, the system of the project is built in such a way that they should be sent for burning and due to this get access to the platform for cloud mining.

There is also a toolbar for the convenience of users. With its help, you can manage all your digital assets and change tokens to hash power for bitcoin mining.

You can purchase BTCMTX right now on the official website of the project for $0.0112. To do this, it is enough to connect a cryptocurrency wallet with USDT, ETH or BNB (investor’s choice).

Pros:

• Free token giveaway worth $30,000.
• Affordable opportunity to mine bitcoins without buying special equipment.
• Investors can earn two types of tokens at once – BTC and BTCMTX.

Meme Kombat

Another novelty on the market is Meme Kombat. This project allows not only earning coins on steaking, but also betting on virtual battles. At the pre-sale, the startup collected investments worth over $700 thousand at a cost of $0.1667.

First of all, it is worth mentioning that, unlike most similar projects, Meme Kombat gives you the opportunity to earn money on steaking right now. To do this, users do not need to wait for the completion of the presale – it is enough to buy MK tokens and place them in storage.

Also, MK coins can be sent to the game for betting on the winners of virtual fights. The thing is that the basis of the project is a digital arena, where investors can “fight” with each other or against the computer. In addition, the developers have introduced an artificial intelligence mechanism to make the game battles even more exciting and interesting.

Another distinctive feature of Meme Kombat is the ability to bet not only on the outcome of virtual battles, but also on some of their aspects. For example, it can be certain types of in-game weapons, characters or bonus skills of opponents.

MK can be purchased for $0.1667. To do so, you will need a connected cryptocurrency wallet with USDT, ETH or BNB.

Pros:

• Earning cryptocurrency in game form.
• Improving gamers’ experience by integrating AI.
• Participate in the first battles as early as this year.

Factors that determine the decline in demand for staking

Fewer and fewer users are putting Ethereum into storage. This can be due to a number of different factors. This is the opinion of analysts who assessed the current situation and compiled a report for CoinDesk.

First of all, the experts noted a decrease in the size of rewards. At the beginning of this year, the amount was 5-6%, and now it has decreased to 3.5%. According to experts, this may be due to the low activity of the network within the framework of generating commission income, as well as the growth of the number of stakers themselves.

Author: Saifedean Ammous, an expert in cryptocurrency economics.