Ethereum: As major firms dominate staking, ETH’s security may be in question
TheEthereum [ETH] Merge with the proof-of-stake (PoS) network was successfully completed as of 15 September. The implication of the Merge is that miners are now replaced by validators on the Ethereum network. However, a relatively small number of companies control the PoS mechanism. This has left analysts worried over the centralization of the ETH network.
According to a recent Dune Analytics study, Lido and Coinbase are presently the two ETH holders with the highest stakes. At the time of writing, each held 4.16 million ETH (30.1%) and 3.65 million ETH (14.5%), respectively. The remaining stakers own 26.5% in all.
Source: Dune Analytics
Martin Köppelmann, co-founder of the DeFi platform Gnosis, also noted this dominance. He released a chart that showed Coinbase and Lido had the largest percentage of stake-based Ethereum validation. He also tweeted that it was disappointing to see the top seven entities possessing more than two-thirds of the ETH stake.
<p lang=«en» dir=«ltr» xml:lang=«en»>Out of the last 1000 blocks, 420 have been built by just Lido and Coinbase.— Martin Köppelmann
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