## Coinbase Dominates Ethereum Staking
Coinbase has solidified its position as the largest independent node operator on the Ethereum network, according to its first Validator Performance report. The exchange currently stakes 3.84 million ETH through 120,000 validators, representing 11.42% of all staked ETH. This figure surpasses centralized competitors like Binance (approximately 2 million ETH staked) and Kraken (around 1 million ETH staked). Furthermore, Coinbase has staked an additional 581,500 ETH via partners, further cementing its leadership in the space.
## Overcoming Regulatory Hurdles
This growth comes despite legal challenges from the SEC, which alleged that Coinbase’s staking services violated securities laws. Coinbase refuted these claims, arguing that staking contributes to network security and does not meet the criteria of a security as defined by the Howey Test. The exchange remains committed to its staking services.
## High Validator Performance and Decentralization
Coinbase boasts a 99.75% uptime and participation rate for its validators, demonstrating high efficiency and reliability. These validators are geographically distributed across multiple jurisdictions, including Japan, Singapore, Ireland, Germany, and Hong Kong, promoting decentralization. Furthermore, the use of multiple execution and consensus clients enhances network security and mitigates potential risks, ensuring consistent rewards and preventing slashing or double-signing incidents.
## Largest Independent Node Operator, but Lido Still Leads
While Coinbase leads as the largest single entity operating nodes, Ethereum educator Anthony Sassano clarifies that Lido, a decentralized staking pool, holds a larger overall share of staked ETH (approximately 27.3% or 9 million ETH), albeit distributed among numerous smaller node operators. Coinbase’s significant stake, however, solidifies its prominent role in the Ethereum ecosystem.
