In a recent revelation, renowned cryptocurrency exchange Coinbase has risen to become the second-largest entity in the Ethereum (ETH) staking arena, a development that has attracted attention in light of mounting concerns regarding network centralization driven by Lido’s dominant position in the ETH staking market.
According to information unearthed by Chinese reporter Colin Wu and a report by Dragonfly data scientist hildobby, which leveraged data from Dune analytics, Coinbase currently holds a staggering 3.873 million staked ETH, constituting a substantial 14.1% share of the total staked ETH.
Coinbase’s prominence in the ETH staking landscape is second only to that of the liquid staking platform, Lido DAO, which boasts a commanding presence, accounting for a remarkable one-third of all staked ETH. Other platforms that maintain a significant foothold in the staking space include the Binance and Kraken exchanges, with market shares of 4.2% and 3.0%, respectively. Additionally, the Figment staking pool secures the third position with a 4.9% market dominance.
Notably, Coinbase has witnessed a notable 44% surge in ETH staking activity over the past six months. Intriguingly, this coincides with the period of activity for the Ethereum Shanghai upgrade.
Contrary to concerns that the recent Ethereum network update might lead to a decrease in staked ETH, as it allowed for the withdrawal of staked assets, the Shanghai upgrade has instead bolstered stakers’ confidence. This has resulted in a net positive flow of 7.84 million ETH since the upgrade’s implementation in April.
As of the latest available data, the total amount of staked ETH stands at a substantial 27.42 million ETH, representing an impressive 22.81% of ETH’s circulating supply. These developments underscore the evolving dynamics in the world of ETH staking and its significance within the broader cryptocurrency ecosystem.
