Ethereum developers suggested increasing the validator set to lower the churn limit. The number of validators on Ethereum continued to rise.
In the past quarter, Ethereum [ETH] are experiencing significant volatility due to various events in the crypto sector. But despite market fluctuations, Ethereum’s progress remained on track and the protocol actively pursued further developments in the future.
Realistic or not, here is the market cap of ETH in terms of BTC
New proposals made
In the recent developer call, developers may have raised the issue of lowering the validator churn limit, which determines how quickly validators can join or leave the Beacon Chain. The goal was to slow the growth of the validator set size and make the change in time for the Deneb/Cancun (Dencun) upgrade.
Ethereum aims to avoid a large validator set to avoid pressure on the peer-to-peer network layer. A large set of validators also makes it challenging to make future code changes.
The solution proposed by developers is to limit the churn limit to 12 validator inputs and outputs per era. This limit would effectively slow down the growth rate of the validator set, allowing more time to explore other ideas for managing the long-term growth of the validator set.
The proposed change is intended as a short-term measure while further solutions are developed.
At the time of writing, there were 672,507 validators on the Ethereum network. According to Staking Rewards data, this number has grown by 9.26% over the past month.
Source: Staking Rewards
While validators were bullish on Ethereum, things may get worse for ETH in the future.
What should buyers and sellers do?
According to data from Greek.live, cryptocurrencies had a V-shaped market. This was indicated when ETH initially dipped below $1,875, but quickly recovered during Asian trading hours to recover its value. Surprisingly, the options market did not react significantly to these movements.
In their previous market analysis, Greek.live pointed out that the crypto market is losing liquidity, making it vulnerable to sudden spikes and V-shaped movements. Even small momentum can lead to widespread price changes.
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According to their analysis, sellers in today’s market should prioritize static protection and have a risk management plan for holding options to expiration.
On the other hand, buyers should take profits quickly and consider using futures to dynamically hedge their options, which may be a more favorable approach.
Source: Greeks.live
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