Coinbase Dominates Ethereum Staking with 11.4% Market Share

In February, Coinbase held a significant position in the Ethereum staking market, controlling 11.4% of the total market share. This was revealed in a transparency report issued by the exchange, which detailed that Coinbase had 120,000 validator nodes and 3.84 million ETH staked in its validators. The validator nodes were strategically located in various regions, including Japan, Ireland, Singapore, and Germany, with the exchange relying on two execution clients and cloud providers to ensure reliability.

Ethereum educator Sassal acknowledged that Coinbase's 11.4% market share made it the largest validator node operator on the network. Sassal noted that while Lido is larger as a collective, each node operator within Lido has a much smaller percentage share compared to Coinbase. This transparency report came after key industry players urged Coinbase to share its Ethereum staking operations, as most data were previously based on estimates. For instance, Dune Analytics had estimated Coinbase’s market share at 8% with 2.7 million ETH staked.

In terms of staked ETH, Lido maintained its lead with 9.3 million staked ETH. Overall, 34.1 million ETH has been staked, representing 27.7% of the total supply. After a slump in January 2025 marked by outflows, ETH staking rebounded in February. Over the past two weeks, 54,000 ETH flowed into the staking system, reinforcing confidence in the altcoin despite a significant drawdown in its price.

According to Staking Rewards, ETH stakers are entitled to a 3% annualized reward, providing an additional yield for long-term investors. However, despite the record interest in ETH staking, the altcoin’s price has lagged behind others. At the time of writing, it was valued at just over $2,000, down 54% from its recent highs. This discrepancy highlights the complex dynamics between staking interest and market sentiment, where staking rewards may not directly translate to price appreciation.