Coinbase Emerges as Ethereum’s Largest Node Operator with 11% Stake
Coinbase has become the largest node operator on the Ethereum network, controlling 11.42% of the total staked Ether (ETH), according to a recent report from the crypto exchange.
Coinbase Holds 3.84 Million ETH in Staking
Coinbase revealed it currently has 3.84 million ETH, valued at approximately $6.8 billion, staked to its validators. This represents 11.42% of the total ETH staked on Ethereum as of March 3.
Anthony Sassano, host of The Daily Gwei, noted that Coinbase’s stake makes it the “single largest node operator” on Ethereum. While staking platform Lido collectively holds more ETH, each individual node operator within Lido has a smaller share.
Validator Performance Exceeds Targets
Coinbase reported impressive validator performance metrics:
- Average validator uptime: 99.75% (target was 99%)
- Participation rate: 99.75% (network average: 99.52%)
- Block signing and submission via MEV relays: 99.76% (network average: 99.38%)
The exchange attributed these strong results to a 2024 upgrade that allowed validators to remain operational during beacon node maintenance.
Coinbase emphasized its commitment to decentralization by distributing validators across multiple global regions, including Japan, Singapore, Ireland, Germany, and Hong Kong.
ETH Price Surges Above $2,000
Following Coinbase’s report, Ethereum’s price surged significantly, reaching a weekly high of $2,060.73 on March 2, marking a 12.3% increase over seven days. On March 19, ETH’s daily trading volume hit $17.4 billion as the price surpassed $2,000.
This price increase contrasts recent bearish sentiments, including a prediction by a Yuga Labs executive suggesting ETH could drop as low as $200 in a prolonged bear market.
Quick Summary
- Coinbase now controls 11.42% of Ethereum’s total staked ETH.
- Validator uptime and participation rates exceed network averages.
- ETH price surged above $2,000 following Coinbase’s report.
- Coinbase validators operate globally to support decentralization.
