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Ethereum’s Top Stakers Control 48% of Staked ETH in a ‘Potentially Unhealthy’ Centralization: Flipside

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There is a stark difference between the staking concentration of Ethereum and Polygon.

A new report suggests that Ethereum’s staking activity remains considerably more concentrated than Polygon’s in what it considers “potentially unhealthy” for the ecosystem.

Ethereum Staking Dominated by Few

According to Flipside’s “YoY PoS Staking Report” shared with CryptoPotato, from September 2023 to 2024, Ethereum’s top 10 stakers consistently controlled nearly half – around 47-48% – of the total staked ETH, reflecting a stable but concerning level of centralization in its staking ecosystem.

This lack of movement towards greater decentralization could raise red flags about the network’s reliance on a few dominant players.

“The stable concentration in Ethereum’s staking ecosystem suggests that the chain remains centralized to a (potentially unhealthy) degree and there hasn’t been significant movement towards either decentralization or further consolidation this past year.”

Polygon, on the other hand, saw its top 10 stakers grow their share from 20.4% to 24% over the same period. This increase, driven by smaller institutions, indicates a healthier distribution of staking power on Polygon and suggests a trend toward more decentralized control.

Since September 2023, 8 of Ethereum’s top 10 stakers have either maintained or expanded their PoS ETH stakes. Meanwhile, Lido remains the dominant player in Ethereum’s PoS staking, increasing its stake from 8.8 million to 9.8 million ETH during this period. Despite rising competition and notable Lido outflows among Polygon stakers, Lido’s growth on Ethereum has remained unfazed.

Consistent Inflows for Ethereum

Ethereum’s total staked ETH saw a significant increase from 27.2 million to 34.7 million between September 2023 and 2024, with staked ether growth closely aligned with validator expansion. The largest month-over-month surge occurred between January and February 2024, when staked ETH rose from 29.6 million to 31.4 million – a 6% increase.

This spike coincided with rising speculation about the SEC’s potential approval of futures Ethereum ETFs and heightened market activity, which likely drove more users to participate in staking.

Another notable growth period occurred between May and June 2024, where staked ETH increased by a million, reflecting enthusiasm following the successful Shanghai upgrade. Flipside noted that this upgrade introduced key optimizations and reduced fees, which likely contributed to the boost in staking activity.

Ethereum also experienced steady net inflows of staked ETH at the time with no significant periods of net outflows. On average, monthly net inflows ranged between 600k to 1 million ETH, with the highest inflow recorded in February 2024.

The figures peaked at 1.8 million ETH. This consistent growth reflects strong user confidence in Ethereum’s staking rewards and the network’s overall appeal. The expansion of Tether in November 2023, when 4 billion USDT was minted on Ethereum, likely contributed to increased network activity.

Pos Ethereum’s Top Stakers Control 48% of Staked ETH in a ‘Potentially Unhealthy’ Centralization: Flipside muncul pertama kali di CryptoPotato.


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