Nansen: 64% of staked ETH controlled by five platforms

According to the study, staking accounts for about 11% of all Ethereum issuance

13.09.2022 - 12:10

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What’s new? According to a report by analytics firm Nansen, 64% of staked Ethereum (ETH) is controlled by 5 entities: Lido Finance (31%), Coinbase (15%), Kraken (8,5%), Binance (6,75%), and Staked.us (3,92%). Cointelegraph reports, citing a document, that 23% of all staked ETH accounts for the unlabeled group of validators. The study also says that staking accounts for just over 11% of the total number of circulating coins on the Ethereum network. In total, there are 426 000 validators and about 80 000 depositors.

Source: Cointelegraph.com

Cointelegraph’s material

What else did the report say? Nansen said that given the ongoing downturn in cryptocurrency markets, most of ETH is currently unprofitable. According to analysts, most investors will sell their assets as soon as withdrawals are unlocked.

The report also noted that Lido Finance, a platform for liquid staking, which owns the most significant share of the sector, is too centralized, thus risking censorship. According to experts, most of the platform’s governance tokens, LDO, are concentrated in the hands of a small number of holders.

Earlier, Ethermine, the largest mining pool on the Ethereum network, launched an ETH staking feature. The minimum amount of locked funds is 0,1 ETH, and the service offers an annual interest rate of 4,43%.

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