![Ethereum validators observe unprecedented consecutive drops in network involvement](https://cryptoslate.com/wp-content/themes/cryptoslate-2020/imgresize/timthumb.php?src=https://cryptoslate.com/wp-content/uploads/2023/01/ethereum-insight-1.jpg&w=70&h=37&q=75)
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 โ 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.
![Validators: (Source: Glassnode)](https://cryptoslate.com/wp-content/uploads/2023/04/AV11.png)
![Participation Rate: (Source: Glassnode)](https://cryptoslate.com/wp-content/uploads/2023/04/PR.png)