Coinbase has solidified its position as the largest node operator on the Ethereum network, as revealed in its latest performance report.
Coinbase has emerged as the largest node operator on the Ethereum network, according to its latest performance report. The platform currently oversees 11.42% of the total staked Ether (ETH), which amounts to 3.84 million Ether, valued at approximately $6.8 billion. In comparison, Lido, a popular liquid staking solution, manages 15.77% of the total staked ETH, but this is collective management across multiple node operators.
Anthony Sassano, the host of The Daily Gwei, highlighted Coinbase's status, asserting that while Lido may have a broader collective stake, Coinbase stands out as the "single largest node operator." This distinction is crucial in a landscape where many stakers operate on a much smaller scale.
Coinbase reported a validator uptime of 99.75%, exceeding its target of 99% while still prioritizing security. This figure reflects an upgrade implemented in 2024, which enabled Coinbase to maintain validator operations despite performing necessary beacon node maintenance.
The participation rate for Coinbase validators is similarly pegged at 99.75%, which outpaces the Ethereum network average of 99.52%. Coinbase's efficiency extends to its MEV relays, with an average signing and block submission rate of 99.76%, which is also above the network's 99.38%.
To enhance the decentralization of the Ethereum blockchain, Coinbase has strategically dispersed its validators across various regions, including Japan, Singapore, Ireland, Germany, and Hong Kong. This move aims to mitigate the risks associated with centralization, a critical concern in the crypto landscape.
Coinbase's report comes at a time when Ethereum has been experiencing notable price movements. On March 20, Ether's price surged above the $2,000 mark, driven by increased accumulation as investors began stockpiling the asset. The cryptocurrency peaked at $2060.73 on March 2, marking a 12.3% increase over the week.
This surge in price occurred despite bearish predictions, which suggested that ETH could face declines as severe as $200 during prolonged bear market conditions. A report by crypto analytics firm Glassnode revealed that despite the strong bullish momentum and an increase in active addresses, a deep netflow imbalance persists, setting the stage for a price decrease of $190 to $200.
