Coinbase controls a significant share of ETH staking, raising questions about its impact on Ethereum's decentralization.
Coinbase's Impact on Ethereum Staking
As of March 4, Coinbase controls over 11% of all staked ETH, equating to 3.84 million ETH across 120,000 validators. This concentration of power raises concerns among specialists.
Experts' Concerns About Centralization
Karan Sirdesai, CEO of startup Mira Network, expressed concern over the dominance of large players, highlighting centralization risks. Meanwhile, Lido, another major player, mitigates centralization risk by distributing its stake among independent node operators. Coinbase makes efforts to maintain balance by distributing operations across multiple countries and providers.
Future of ETH Staking and Market Competition
The future of staking could change with the introduction of ETH ETFs, potentially increasing the role of major players. Experts like Temujin Louie from Wanchain warn of potential censorship risks. Meanwhile, companies like Robinhood could become serious competitors to Coinbase in the staking field.
The influence of major companies on Ethereum staking sparks discussions on potential risks to network decentralization.
