Coinbase Becomes Largest Ethereum Node Operator, Controlling 11.42% of Staked ETH

Coinbase has emerged as the largest node operator on the Ethereum network, controlling 11.42% of the total staked Ether (ETH), according to a recent performance report by the crypto exchange.

The report states that as of March 3, Coinbase had 3.84 million ETH staked to its validators, valued at approximately $6.8 billion.

Crypto analyst Anthony Sassano, host of The Daily Gwei, pointed out that while staking platform Lido holds a larger collective share of staked ETH, its network is distributed among multiple smaller node operators, making Coinbase the single largest individual operator.

The exchange also reported strong validator performance, boasting an average uptime of 99.75%, exceeding its 99% target.

Validator participation rates, a key metric for network reliability, stood at 99.75%, outperforming the network average of 99.52%.

Additionally, block signing and submission rates through MEV relays reached 99.76%, surpassing the network average of 99.38%.

Coinbase credited these results to a 2024 system upgrade, which enabled validator maintenance without downtime.

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

Despite its centralized exchange status, Coinbase has expanded its geographical distribution, operating validators across Japan, Singapore, Ireland, Germany, and Hong Kong to promote a decentralized Ethereum network.

Following the report, ETH prices surged, with accumulation addresses increasing their holdings.

On March 2, ETH hit a weekly high of $2,060.73, marking a 12.3% increase in seven days.

By March 19, daily trading volume soared to $17.4 billion, pushing ETH back above $2,000.

However, market sentiment remains mixed.

On March 11, Yuga Labs’ vice president of blockchain suggested that ETH could drop to $200 if a prolonged bear market unfolds.

“A true bear market target, if we’re just getting started, would be ~$200-$400. That’s an 80% drawdown from here, 90% total drawdown — in line with past bear markets,” he wrote on X.

Earlier this month, Coinbase CEO Brian Armstrong said the exchange is ramping up hiring in the United States, crediting former President Donald Trump’s pro-crypto stance for the move.

Armstrong revealed that the exchange plans to add approximately 1,000 employees in the U.S. this year.

The hiring spree would increase Coinbase’s workforce by about 27%, based on Stockanalysis data that estimates the company currently has 3,772 employees.

More recently, Armstrong said U.S. President Donald Trump’s crypto agenda has become a central topic of discussion across the crypto industry, financial markets, and the tech world.

“Basically, every conversation I had with major market leaders was focused on what the Trump administration planned to do on crypto,” Armstrong said.

He added that Trump’s bold vision is pushing industry players to step up, with many striving to avoid being left behind in the rapidly evolving landscape.

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