The Ethereum network has experienced a surge in validator numbers, nearing the one million mark.

On-chain data from Beacon Chain and Ethereum's Validator Queue indicates an active validator count of 979,686. However, a Dune Analytics dashboard overseen by Dragonfly analyst Hildobby suggests the total number on the network exceeds one million.

These validators have collectively staked 31.36 million ETH, equivalent to approximately 26% of the digital asset's total supply.

Most of these validators staked their assets through the liquid staking platform Lido, accounting for around 30% of the staked ETH.

Validators play a crucial role in maintaining the network's security through its proof-of-stake mechanism. They stake a minimum of 32 ETH and receive rewards in return.

The increasing number of validators indicates a strengthened network and underscores the blockchain's enhanced security.

This milestone is particularly significant amid a surge in validator interest, evidenced by a growing queue of over 10,000 validators awaiting network entry—the highest seen this year. This waitlist represents over 320,000 ETH, equivalent to $1.1 billion, and is expected to clear within the next seven days.

Vitalik Buterin, Ethereum's co-founder, recently proposed improvements to the network's staking mechanism. In his blog post, Buterin outlined a plan to impose penalties on validators based on their average failure rates. This addresses the advantage larger ETH stakes have over smaller ones.

Buterin also suggested stricter penalties for failures occurring simultaneously among several validators controlled by one entity. According to him, penalizing correlations would incentivize better decentralization in the protocol and encourage larger entities to diversify their operations, reducing the risk of widespread network failures.