TechFlow News, January 29: According to a Cointelegraph report, the number of validator nodes on the Solana network has plummeted by 68% since 2023—falling from a peak of 2,560 in March 2023 to just 795 as of this Wednesday—raising concerns about the network’s decentralization.
Industry insiders say rising operational costs and zero-fee competition are forcing small validator operators out of the market. Moo, an independent Solana validator operator, stated on social media that many small validators are considering shutting down due to an “economically unviable model.”
In addition to the decline in validator count, the Nakamoto Coefficient—a metric measuring blockchain decentralization—has also dropped by 35% over the same period, falling from 31 to 20. The cost of operating a validator has risen significantly: beyond hardware and server expenses, operators must invest at least $49,000 worth of SOL tokens in the first year, and pay at least 401 SOL annually in voting fees to remain active.
