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Solana’s daily validator count has dropped below 800, returning to 2021 levels. In less than three years, their number has decreased by 65%. At the beginning of 2023, the number of validators in the network was a record 2,500, experts from The Block recalled.
The primary activity of Solana validators is to confirm transactions and create blocks. To participate in the Solana Proof-of-Stake consensus, validators, as independent nodes, stake SOL and vote for blocks to ensure security. However, daily activity has now decreased: the number of transactions sent by validators to confirm blocks has almost halved, from 300,000 to 170 000 per day.
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This means that many validators are leaving Solana due to worsening network economics. Initially, the Solana Foundation’s support program helped cover their expenses, but this assistance is gradually being reduced. As a result, small validators may have difficulty covering voting fees, and their infrastructure costs sometimes exceed their reward income, The Block writes.
Despite the reduction in the number of validators, the number of non-voting transactions on the Solana blockchain remains relatively stable at around 100 million daily. These transactions may involve trading on decentralized exchanges, interacting with decentralized applications, and moving tokens. Thus, the activity of Solana users has remained stable since the rise of memcoins, the publication’s experts stated.
The influx of capital into exchange-traded funds (ETFs) linked to the SOL cryptocurrency reached $23.5 million in mid-January. The leaders in the influx of funds were the BSOL fund from Bitwise, GSOL from Grayscale and FSOL from Fidelity.
