Ethereum's staking rewards rate hits post-Merge record high, fueled by memecoin frenzy

Quick Take

  • Ethereum’s average fees surpassed 100 gwei recently, leading to an increased reward rate for validators.
  • Validators earned 24,997 ETH ($46 million) in the first week of May, a 36% increase compared to the week prior. 

Ethereum's staking rewards rate climbed to a post-Merge record 8.6% this week, fueled by a surge in on-chain gas fees driven by the recent memecoin frenzy. 

The jump in the staking rewards rate, which is a metric for the annualized yield of validators, has translated into $46 million in total income for validators in the first week of May. In all, validators earned 24,997 ETH on the week, according to data by ETH Store on the website. That's a 40% increase over the $33 million in income for the final week of April, when 18,339 ETH were distributed as rewards. 

Validators can thank the current memecoin trading trend. Ethereum's average fees consistently surpassed 100 gwei in the last week, the highest since May 2022. Thats' resulted in costs of over $30 per swap for end users. As gas fees rise, validators benefit from higher fee income from processing transactions, in addition to their regular validator rewards.

According to, the current staking rate rate represents how much annualized return validators can expect. To participate in the network's consensus process, Ethereum validators are required to stake a minimum of 32 ETH, which is approximately $58,000.

ETH Store, a firm that measures reward rates, identifies two types of rewards: consensus rewards for proposing and attesting blocks, and transaction fees for processing transactions on the Ethereum network.


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ETH staking has become increasingly important for institutions since the Ethereum network switched to a proof-of-stake (PoS) consensus mechanism with The Merge last year, and with the recent Shapella upgrade that enabled validator withdrawals for the first time. Currently, there are over 19 million ether staked on the network by 560,000 validator entities, which valued at $34 billion.

The price of ETH is down 1% on the day, changing hands at $1840 at the time of writing. 

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Vishal Chawla is The Block’s crypto ecosystems editor and has spent over six years covering tech protocols, cybersecurity, artificial intelligence and cloud computing. Vishal likes to delve deep into blockchain intricacies to ensure readers are well-informed about the continuously evolving crypto landscape. He is also a staunch advocate for rigorous security practices in the space. Before joining The Block, Vishal held positions at IDG ComputerWorld, CIO, and Crypto Briefing. He can be reached on Twitter at @vishal4c and via email at [email protected]


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