The post-Merge memecoin craze has resulted in a record high in Ethereum’s staking rewards rate

The average costs on Ethereum have lately risen beyond 100 gwei, which has resulted in a higher incentive rate for validators.

As on-chain fuel costs skyrocketed because of the current memecoin craze, Ethereum’s staking rewards rate soared to a post-Merge record of 8.6% this week.

Income for validators in the first week of May amounted to $46 million, thanks to the increase in the staking rewards rate (a measure of the annualized return of validators).

According to reports from ETH Store on the beaconcha.in website, this week’s total ETH earnings for validators amounted to 24,997. The last week of April brought in $33 million and rewarded miners with 18,339 ETH, representing a 40% increase from the previous week. The recent memecoin trade pattern is well appreciated by validators.

In addition to the standard validator incentives, validators might earn more in transaction fees when the price of petrol rises. Beaconcha.in claims that the annualized return validators may anticipate is equal to the current staking rate.

When it comes to the Ethereum network, there are two distinct forms of rewards, as defined by the reward measurement business ETH Store: consensus rewards for proposing and attesting blocks, and transaction fees.

More organizations are staking ETH now that the Ethereum network has switched to a PoS consensus technique with last year’s The Merge, and now that the newest Shapella version permits validator withdrawals.

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