Top Ethereum staker controls 48% of staked ETH in “potentially unhealthy” centralization: Flipside

There is a clear difference in staking intensity between Ethereum and Polygon.

A new report suggests that Ethereum's staking activity remains significantly more focused than Polygon's on what is considered to be “potentially unhealthy” for the ecosystem.

Ethereum staking is monopolized by a few

According to Flipside’s “YoY PoS Staking Report.” crypto potatofrom September 2023 to 2024, Ethereum's top 10 stakers consistently controlled almost half (about 47-48%) of all staked ETH, making it a stable player in the staking ecosystem. reflects an alarming level of centralization.

A lack of movement towards further decentralization could raise red flags that the network is dependent on a few dominant players.

“The stable concentration in Ethereum’s staking ecosystem means that the chain remains centralized to a (potentially unhealthy) degree, with no major moves towards decentralization or further consolidation over the past year. It suggests.”

Polygon, on the other hand, saw its top 10 investors' share increase from 20.4% to 24% over the same period. This increase is due to smaller institutions, indicating a healthier distribution of staking power at Polygon and suggesting a trend toward more decentralized management.

Since September 2023, 8 of Ethereum's top 10 stakers have maintained or expanded their PoS ETH stakes. Meanwhile, Lido remains the dominant player in Ethereum PoS staking, increasing its staking from 8.8 million to 9.8 million ETH during this period. Despite increased competition among Polygon stakers and notable Lido exodus, Lido's growth on Ethereum remains unabated.

Consistent inflows into Ethereum

Ethereum’s total staked ETH will increase significantly from 27.2 million to 34.7 million between September 2023 and 2024, with the increase in staked ether closely matching the expansion of validators. I did. The largest month-on-month spike occurred from January to February 2024, when staked ETH increased by 6% from 29.6 million to 31.4 million.

This surge coincided with increased speculation and increased market activity regarding the possibility of the SEC approving a futures Ethereum ETF, which may have encouraged more users to participate in staking.

Another notable period of growth occurred between May and June 2024, when staked ETH increased by 1 million, reflecting the enthusiasm following the success of the Shanghai Upgrade. Flipside noted that this upgrade introduced major optimizations and fee reductions, which likely contributed to boosting staking activity.

Additionally, Ethereum was experiencing steady net inflows of staked ETH at the time, with no periods of significant net outflows. On average, monthly net inflows ranged from 600,000 to 1,000,000 ETH, with the highest inflows recorded in February 2024.

That number peaked at 1.8 million ETH. This consistent growth reflects strong user confidence in Ethereum's staking rewards and the overall attractiveness of the network. The expansion of Tether, where 4 billion USDT was minted on Ethereum in November 2023, may have contributed to the increase in network activity.