Coinbase has solidified its position as the largest node operator on the Ethereum network, controlling 11.42% of the total staked Ether (ETH), according to a new report released by the crypto exchange.
Coinbase Leads Ethereum Staking With $6.8 Billion in ETH
The report revealed that Coinbase currently has 3.84 million ETH, worth approximately $6.8 billion, staked across its validators. As of March 3, this represents 11.42% of all staked ETH, making Coinbase the single largest node operator on the Ethereum network.
Anthony Sassano, host of The Daily Gwei, highlighted Coinbase’s dominant role in Ethereum staking. While staking platform Lido remains the largest collective staking entity, its node operators have significantly smaller individual stakes compared to Coinbase.
Superior Validator Performance and Network Uptime
Coinbase’s performance report also noted that the exchange has exceeded expectations in validator uptime and participation rates. The platform recorded an impressive 99.75% uptime—well above its 99% target. The participation rate, which measures validator engagement in consensus duties, matched this high figure, surpassing the network average of 99.52%.
Coinbase attributed its superior validator performance to a 2024 upgrade that ensures continuous validator operations even during beacon node maintenance. Additionally, the exchange’s average for signing and submitting blocks produced by its MEV relays reached 99.76%, higher than the Ethereum network’s 99.38%.
Global Validator Distribution and Ethereum Decentralization
Despite operating a centralized exchange, Coinbase emphasized that its validators are geographically distributed across multiple regions, including Japan, Singapore, Ireland, Germany, and Hong Kong. This global approach aims to contribute to Ethereum’s decentralization while maintaining network security.
Coinbase’s report coincided with a bullish momentum in ETH prices. On March 2, ETH reached a weekly high of $2,060.73, marking a 12.3% increase in seven days. By March 19, daily trading volume soared to $17.4 billion, pushing ETH beyond the $2,000 mark.
This price surge comes despite earlier bearish predictions, including Yuga Labs’ vice president of blockchain suggesting ETH could plummet to $200 in a prolonged downturn. However, the recent accumulation trend and increased staking activity suggest growing investor confidence in Ethereum’s long-term prospects.
With Coinbase continuing to play a crucial role in Ethereum staking and network security, its influence in the broader crypto landscape remains significant.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
