Coinbase Becomes Ethereum’s Largest Node Operator, Controlling 11% of Staked ETH

Coinbase has cemented its position as Ethereum's largest node operator, controlling 11.42% of the total staked Ether (ETH) on the network. This move further strengthens the crypto exchange's dominance in Ethereum's staking ecosystem, with its validators boasting an impressive 99.75% uptime, surpassing the network’s average performance.

Coinbase Holds 11.42% of Total Staked ETH

According to a recent report from Coinbase, the exchange now holds 3.84 million Ether, which is worth approximately $6.8 billion, staked across its validators. As of March 3, this stake represents a significant portion — 11.42% — of the total staked ETH on the Ethereum network. This makes Coinbase the largest single node operator in Ethereum's staking infrastructure, a milestone that was highlighted by Ethereum analyst Anthony Sassano, host of The Daily Gwei. While Lido remains the largest staking platform as a collective, Coinbase’s individual validator stake surpasses that of any other operator.

High Validator Uptime and Participation Rate

Coinbase has demonstrated exceptional performance with its Ethereum validators, exceeding its own targets for uptime and participation. The exchange’s validators recorded an average uptime of 99.75%, outperforming its goal of 99% uptime. This performance is particularly significant because validator uptime is a crucial metric that indicates how consistently the validators are operational and contributing to the network's security and consensus.

Coinbase's participation rate — a measure of how well its validators perform their consensus duties — was also impressive, sitting at 99.75%. This figure surpasses the Ethereum network average of 99.52%, underscoring Coinbase’s reliability in its role as a major Ethereum node operator. Furthermore, Coinbase’s validators achieved a 99.76% rate for signing and submitting blocks produced by their Miner Extractable Value (MEV) relays, outperforming the network average of 99.38%.

Global Validator Distribution

Despite operating as a centralized exchange platform, Coinbase is working to support a more decentralized Ethereum network. To ensure a global and distributed presence, the exchange operates its validators across several regions, including Japan, Singapore, Ireland, Germany, and Hong Kong. This strategic distribution helps maintain the decentralization and security of Ethereum’s blockchain, providing further assurance to users and stakeholders in the Ethereum ecosystem.

Surge in Ether Price as Coinbase’s Dominance Grows

Coinbase’s dominance in Ethereum staking coincided with a notable surge in Ether’s price. On March 19, the price of ETH surpassed $2,000, with daily trading volume reaching $17.4 billion. This marked a recovery after a bearish sentiment that had lingered in the market. Notably, on March 2, Ether had peaked at a weekly high of $2,060.73, representing a 12.3% increase in just seven days.

This price surge follows an increase in ETH accumulation by large holders, as evidenced by growing inflows into Ethereum accumulation addresses. Despite some negative sentiment in the market, particularly with bearish predictions from figures like Yuga Labs' Vice President of Blockchain, who suggested ETH could drop to as low as $200 in a prolonged bear market, the price of Ether has shown resilience and continues to attract significant interest from both individual and institutional investors.

Conclusion

Coinbase's growing stake in Ethereum staking solidifies its position as a central player in the Ethereum ecosystem, as it operates the largest share of Ethereum’s node infrastructure. With high validator uptime and global distribution, Coinbase continues to contribute to Ethereum's decentralization and security, reinforcing the trust of its users in the network. As Ethereum’s price remains strong, Coinbase's efforts further demonstrate the exchange's commitment to supporting the Ethereum blockchain while capitalizing on the growing demand for staked assets.