TL;DR
- Largest Individual Operator: Coinbase now leads as Ethereum’s biggest single-node operator, controlling 11.42% of staked ETH (3.84 million ETH, approximately $6.8B in value).
- Stellar Validator Performance: Its validators excel with a 99.75% uptime and participation rate, significantly outperforming network averages.
- Enhanced Decentralization: Despite being centralized, Coinbase mitigates risks by operating validators across multiple global regions, reinforcing Ethereum’s decentralization.
Coinbase has solidified its position as the largest individual node operator on the Ethereum network, controlling an impressive 11.42% of the total staked Ether (ETH). As of March 3, the exchange has staked 3.84 million ETH, valued at approximately $6.8 billion, across its validators. This achievement places Coinbase ahead of other major players, including staking platform Lido, in terms of individual node operator stakes.
While Lido holds a larger collective share of staked ETH, its network is distributed among multiple smaller node operators. Coinbase’s dominance as a single entity underscores its growing influence within the Ethereum ecosystem.
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! https://t.co/F3WEDdj0da
— sassal.eth/acc 🦇🔊 (@sassal0x) March 19, 2025
Exceptional Validator Performance
What sets Coinbase apart is the exceptional performance of its validators. The exchange reported an average validator uptime of 99.75%, surpassing its internal target of 99% and outperforming the network average of 99.52%.
This high uptime ensures that Coinbase’s validators remain operational even during beacon node maintenance, thanks to a system upgrade implemented in 2024.
Additionally, Coinbase’s validators achieved a participation rate of 99.75%, exceeding the network average. Their success rate in signing and submitting blocks through Maximum Extractable Value (MEV) relays also stood at 99.76%, further highlighting their operational efficiency.
Commitment to Decentralization
Despite being a centralized exchange, Coinbase has taken significant steps to align with Ethereum’s decentralization principles. The company has distributed its validators across multiple regions, including Japan, Singapore, Ireland, Germany, and Hong Kong. This geographical diversity helps mitigate centralization risks and ensures the resilience of the Ethereum network.
Implications for the Crypto Market
Coinbase’s rise as Ethereum’s largest node operator has broader implications for the cryptocurrency market. The exchange’s robust staking infrastructure and validator performance could attract more institutional and retail investors to Ethereum staking.
This development also highlights the increasing role of centralized entities in decentralized ecosystems, sparking discussions about the balance between efficiency and decentralization.
As Coinbase continues to expand its footprint in the Ethereum network, its role as a major node operator is likely to shape the future of staking and decentralization. With its validators setting new benchmarks for performance and reliability, Coinbase is poised to play a pivotal role in Ethereum’s ongoing evolution.
