Ethereum validators, who provide security to the network using its Proof-of-Stake consensus algorithm, witnessed a stellar rise in earnings with 24,997 Ether collected, in the first week of May. This amount is a 40% more than the previous week’s earnings of$33 million, when 18,3339 $ETH were distributed in rewards. The surge in payouts is mainly attributed to the popularity of a new meme-themed digital currency called Pepe (PEPE).

The trading activity around PEPE has resulted in the Ethereum network fees surging to a peak not seen since May of last year, over $30 per transaction swap, leading to higher fee income for the validators. Validators are required to stake a minimum of 32 ETH, worth approximately $58,000. This amount could be lowered with staking solutions such as those offered by centralized exchanges or other liquid staking services.

The staking rewards on Ethereum achieved an annual yield of 8.6% in mid-May, a figure that has been driven by the increased trading of memecoin. Three whales have together invested nearly $4 million in PEPE, despite its declining value. The crypto investor who invested 0.125 ETH in PEPE was able to make $1.14 million in a matter of days.

Although the increasing transaction fees on Ethereum will benefit validators, it may take a toll on users. It is yet to be seen how the network adjusts itself to accommodate the high volume of trading activity.



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