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Roughly 35% of all Solana Validators are losing money. Some insights into Solana Validator profitability.

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by COINS NEWS 128 Views

The values and profit analysis uses the cluster average skip rate, cluster average block rewards, and cluster average inflation. You can see the whole list for every solana validator's estimated profits here https://cogentcrypto.io/Validators#apy_estimate_desc

With current SOL prices, ~700 validators, roughly 35%, of all Solana validators are losing money. Interestingly if you took out the server costs, 7-9k, a year that number goes down to ~18% or ~350 validators.

Break even points with current SOL price of ~$36

At 0% commission a validator needs approximately 600k sol to break even.
At 5% commission a validator needs approximately 120k sol to break even.
At 10% commission a validator needs approximately 60k SOL

These number has been increasing through the bear market as you need more and more sol to cover server costs. If we see Sol go down to $20 or below we are looking at more than half of Solana validators in the red.

I'm perennially bullish on SOL but its interesting to see how the security of the network decreases as the price goes down.


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