Ethereum validators observe unprecedented consecutive drops in network involvement 
Quick Take
- Ethereum Shanghai upgrade occurs tomorrow, and the market is indecisive about the potential implications of the price of Ethereum in the short term.
- When analyzing the change in active validators, we see back-to-back negative adjustments for the first time.
- In the past two days, we have seen over 1,000 active validators exit; a queue system regulates changes in the number of validators per epoch to ensure smooth network operation.
- There are still over 560,000 active validators — which has rapidly grown since the merge in September 2022.
- Validators are essential to the network’s security; any drop in validators can cause potential security implications.
- While the participation rate dropped below 99% for only the third time this year, the participation rate is defined as a measure of network validator responsiveness, tracking the proportion of slots missed to the total available. The participation rate is calculated as (Total Slots – Slots Missed) / Total Slots.
Analyst 
James Van Straten
James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century's paramount invention.
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
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