Solana Validator Count Falls 68% as Costs Squeeze Operators
Solana’s validator network has contracted by 68% since March 2023, falling to 795 validators as of Wednesday. The decline coincides with higher operating costs and intensified competition from large operators offering 0% fees, which has pressured smaller node operators.
Validators add new blocks and validate transactions on the blockchain, making them critical to the network’s operation.
While part of the reduction reflects the removal of inactive or “zombie” nodes, industry participants report that rising expenses and fee competition are prompting smaller validators to go offline.
An independent operator using the handle Moo said on X that many small validators are weighing shutdowns because the economics have become unsustainable, noting that this is not due to a lack of confidence in Solana but to cost pressures.
Moo added that 0% fee offerings from larger validators are eroding profitability for smaller operators, making continued participation financially unviable. The operator said efforts to support decentralization are difficult to maintain without an economic foundation.
The trend suggests retail validators are finding it increasingly difficult to contribute sustainably to network security, while larger operators are taking on a greater share of nodes, raising concerns about the degree of decentralized network.
Solana validator count, all-time chart. Source: Solanacompass
Solana’s Nakamoto Coefficient falls 35%
Over the same period, Solana’s Nakamoto Coefficient declined by 35% to 20 as of Wednesday, down from 31 in March 2023, Solanacompass data show. The metric estimates how many independent entities are required to compromise the network, with a lower figure indicating a more concentrated stake and reduced decentralization.
One factor cited for the drop is the rising cost of operating a profitable validator, which has climbed sharply over the past three years alongside the price of Solana (SOL).
Excluding hardware and server expenses, validators need at least $49,000 in SOL for the first year of operations and require a minimum of 401 SOL annually to cover voting fees. Validators must participate in consensus by submitting a vote transaction for each block they attest to, which can cost up to 1.1 SOL per day, according to technical documentation from Solana validator Agave.
The Solana Foundation did not respond to a request for comment by publication time.
Solana Nakamoto Coefficient, all-time chart. Source: Solanacompass
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