The dominance of ETH staking providers is a matter of concern, and here is why

  • 70% of the Ethereum at risk is controlled through staking services, which has raised concerns about decentralization.
  • Revenue generated by Ethereum has increased despite the decrease in trading activity.

According to information from glass knotNote that 70.86% of the total stakes of Ethereum on the beacon chain were held by staking services such as Lido, Coinbase, Kraken, and Binance.

The focus of stake services on the beacon chain has the potential to impact the overall decentralization of the Ethereum network. At press time, Lido has 29.3% of the total ETH stake, followed by Coinbase (12.8%), Kraken (7.6%) and Binance (6.3%).

This indicates that a large portion of ETH is held pegged by a relatively small number of entities and that the network is less decentralized than it could be.

Realistic or not, this is the market cap of ETH in BTC terms

Despite this, the number of validators on the Ethereum network has continued to grow.

Ethereum gets validated

Based on data from Staking Rewards, the number of validators on the Ethereum network has increased by 2.53% in the past month. Besides, the income from the stakes also increased.

This means that more and more people are becoming interested in collecting their ETH and earning rewards for validating transactions on the network.

Source: Staking Rewards

Big ETH addresses are fleeing

Although validators showed interest in ETH, it was noted that large addresses avoided holding Ethereum, despite the high price. According to glass node data, the number of addresses containing 10K+ coins is at a monthly low of 1199 at press time. This indicates that major ETH holders are not as confident about the token’s long-term outlook as they once were.

One of the reasons for this could be the increasing number of Ethereum addresses in profit. At the time of writing, more than 60% of addresses with Ethereum are profitable.

If this number continues to grow, it could incentivize addresses to sell their holdings for a profit, which could negatively affect the price of ETH.

Source: glassnode

Another cause for concern for Ethereum is the decline in the number of Ethereum transactions. Based on Santiment data, the number of Ethereum network shutdowns has decreased significantly.

How much is 1,10,100 ETH worth today?

This has also affected the total gas use in the network, which has fallen sharply in recent days.

Source: feeling

In addition, according to data from the token terminal, the revenue generated by Ethereum increased by 39.6% in the past month. At the time of publication, the cumulative revenue accumulated by Ethereum is $79.3 million.

Source: token terminal

However, it is yet to be determined how all these factors can come together and affect the price of Ethereum.

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