Validators on the Ethereum network capitalized on the record-breaking 8.6% staking figure after the merge and the recent Shapella upgrade, realizing a whopping $46 million in gains only throughout the first week of May.

Data from beaconcha.in revealed that Ethereum validators earned 24,997 Ether (ETH) during the week, which represents a 40% upside over the previous week’s income of $33 million which witnessed 18,399 ETH being distributed as rewards.

The surge in rewards staked can be attributed to the recent memecoin craze, especially with regards to Pepe (PEPE) the frog’s digital currency. The rise in trading activity for PEPE has increased gas fees on the Ethereum network, exceeding 100 gwei, which resulted in end-users paying more than $30 per swap. Hence, higher fee income was enjoyed by validators from processing transactions alongside the regular validator rewards.

In light of PEPE, the digital currency continues to lose its value and market capitalization after hitting all-time highs of $0.00000426 on May 5th, according to readings from CoinMarketCap. If the memecoin continues to lose value, staking rewards on Ethereum may ease.

Sources:

https://cointelegraph.com/news/ethereum-validators-earn-a-record-46m-as-staking-rewards-rate-surges

https://beaconcha.in/ethstore

https://coinmarketcap.com/currencies/pepe/