Coinbase Emerges as Ethereum’s Largest Node Operator with 11% Stake
Quick Summary
Coinbase has become Ethereum’s largest individual node operator, controlling 11.42% of the total staked Ether (ETH). The exchange reported strong validator performance, exceeding network averages in uptime and participation rates.
Key Points
- Coinbase controls 3.84 million ETH, worth approximately $6.8 billion.
- The exchange now operates 11.42% of Ethereum’s total staked ETH.
- Coinbase validators achieved an average uptime and participation rate of 99.75%, surpassing the network average.
- Validators are geographically distributed across Japan, Singapore, Ireland, Germany, and Hong Kong to support decentralization.
- ETH price surged above $2,000 following Coinbase’s report, reaching a weekly high of $2,060.73.
Coinbase Becomes Ethereum’s Largest Node Operator
A recent Coinbase report revealed that the crypto exchange has become the largest individual node operator on the Ethereum network. Coinbase currently controls 3.84 million ETH, representing 11.42% of the total staked Ether, valued at around $6.8 billion.
Anthony Sassano, host of The Daily Gwei, highlighted that Coinbase’s stake makes it the “single largest node operator” on Ethereum. While staking platform Lido collectively holds more ETH, its individual node operators each have smaller shares.
Validator Performance Exceeds Network Averages
Coinbase validators have demonstrated exceptional performance, achieving an average uptime and participation rate of 99.75%. This surpasses the Ethereum network’s average participation rate of 99.52%.
The exchange attributed this high performance to a 2024 upgrade that allowed validators to remain operational during beacon node maintenance. Coinbase validators also outperformed the network average in signing and submitting blocks produced by MEV relays, achieving a rate of 99.76% compared to the network’s 99.38%.
ETH Price Surges Above $2,000
Following Coinbase’s announcement, Ethereum’s price surged significantly, reaching a weekly high of $2,060.73 on March 2. The asset’s daily trading volume peaked at $17.4 billion on March 19 as ETH accumulation addresses increased their holdings.
This price increase contrasts recent bearish sentiments, including a prediction by Yuga Labs’ vice president of blockchain that ETH could potentially drop as low as $200 in a prolonged bear market.
