According to data provided by Glassnode, it was observed that 70.86% of all Ethereum staked on the beacon chain was being staked by staking services such as Lido, Coinbase, Kraken, and Binance. This concentration of staking services on the beacon chain has the potential to impact the overall decentralization of the Ethereum network. At press time, Lido made up 29.3% of the overall staked ETH, followed by Coinbase (12.8%), Kraken (7.6%), and Binance (6.3%).
This data suggests that a relatively small number of entities hold a significant portion of the staked ETH, which raises concerns about the decentralization of the network. Decentralization is a core principle of blockchain technology and is one of the key advantages that it offers over traditional centralized systems. Decentralization helps to ensure that no single entity or group of entities can control the network, and that the network is more secure and resilient to attack.
Despite this, the number of validators on the Ethereum network continued to grow. Based on data provided by Staking Rewards, the number of validators on the Ethereum network grew by 2.53% over the last month. Along with that, the revenue generated by the stakers grew as well. This implies that an increasing number of people are becoming interested in staking their ETH and earning rewards for validating transactions on the network.
This is a positive sign for the Ethereum network, as it shows that more people are becoming interested in participating in the network and earning rewards for helping to secure it. However, it is still important to be aware of the potential impact that a concentration of staking services on the beacon chain could have on the overall decentralization of the network.
To mitigate this risk, it’s important for Ethereum to encourage more individuals and small organizations to participate in the network. This can be done by making it easier for people to set up and run their own validators, and by providing more information and resources to help people understand how to stake their own ETH.
Additionally, Ethereum community needs to push for more decentralization of the network, it can be done by promoting the use of different staking services and decentralized exchanges, which will help to distribute the staked ETH across a larger number of entities.
In conclusion, data provided by Glassnode suggests that a relatively small number of entities hold a significant portion of the staked ETH on the Ethereum network, which raises concerns about the decentralization of the network. However, the number of validators on the Ethereum network continued to grow, which is a positive sign. To ensure that the Ethereum network remains decentralized, it’s important to encourage more individuals and small organizations to participate in the network and promote the use of different staking services and decentralized exchanges.