Coinbase becomes Ethereum’s largest node operator, controlling 11.42% share
Coinbase has become the largest single node operator in the Ethereum network, holding 11.42% of the total staked Ether (ETH), according to a new report by the crypto exchange.
The performance update revealed that Coinbase currently has 3.84 million ETH, valued at approximately $6.8 billion, staked across its validators.
While staking platform Lido holds a larger collective share of Ethereum staking, each of its individual node operators has a much smaller stake.
Anthony Sassano, host of The Daily Gwei, highlighted this distinction, emphasising Coinbase’s dominant position as an independent staking entity.
We now know how much ETH Coinbase has staked (11.42% of the total stake)
This, of course, makes Coinbase the single largest node operator on the network (Lido is bigger as a collective, but each node operator has a much smaller % share)
Kudos to Coinbase for the transparency!
Coinbase validators outperform
Coinbase reported exceeding its validator uptime and participation targets, reflecting the platform’s strong operational efficiency.
The company recorded an average validator uptime of 99.75%, surpassing its internal 99% target while maintaining high security standards.
The exchange attributed this performance to a 2024 system upgrade, which enables continuous validator operations even during beacon node maintenance.
This upgrade has enhanced Coinbase’s reliability and contributed to its status as Ethereum’s most significant node operator.
Alongside uptime, the participation rate—measuring validator engagement in Ethereum’s consensus mechanism—also stood at 99.75%, outperforming the network’s average of 99.52%.
Coinbase’s success rate in signing and submitting blocks through its MEV relays reached 99.76%, exceeding the network’s 99.38% benchmark.
Coinbase expands validator network
Despite operating as a centralised exchange, Coinbase has implemented a geographically distributed staking infrastructure to align with Ethereum’s decentralisation principles.
According to the report, Coinbase’s validators are spread across multiple regions, including Japan, Singapore, Ireland, Germany, and Hong Kong.
This distributed approach helps mitigate centralisation risks and ensures that Ethereum’s validator ecosystem remains resilient.
While concerns persist regarding the influence of large staking entities, Coinbase’s global presence aims to reinforce network stability and security.
The company has also highlighted its efforts to improve validator efficiency through enhanced infrastructure, helping to optimise performance and maintain reliability across different market conditions.
This development positions Coinbase as a leading force in Ethereum’s staking landscape.
ETH price rallies past $2,000
Coinbase’s dominance in Ethereum staking coincided with a surge in ETH prices, driven by increased accumulation by large holders.
On March 2, Ether reached a weekly high of $2,060.73, reflecting a 12.3% gain over seven days.
By March 20, ETH’s daily trading volume had risen to $2.07 billion, with the asset climbing back above the $2,000 threshold.
Source: CoinMarketCap
The price surge comes at a time of mixed market sentiment for Ethereum.
Earlier in March, Yuga Labs’ vice president of blockchain warned that ETH could decline to $200 in an extended bear market.
However, the recent uptick suggests strong investor confidence, possibly fuelled by Coinbase’s growing influence in Ethereum’s staking ecosystem.
Analysts point to Ethereum’s staking growth and increased network activity as key drivers behind ETH’s bullish momentum.
As more investors stake their holdings, the circulating supply of ETH decreases, potentially driving prices higher in the long term.
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