As of March 3, 2025, Coinbase has solidified its position as the largest individual node operator on the Ethereum network, managing 3.84 million ETH across 120,000 validators. This stake represents 11.42% of all staked Ethereum, valued at approximately $6.8 billion .
Validator Performance and Security
Coinbase’s validators have demonstrated exceptional performance, achieving an average uptime and participation rate of 99.75% in February 2025, surpassing the network average of 99.52% . Notably, there have been zero incidents of slashing or double-signing since inception, underscoring the platform’s commitment to security. These results are attributed to a 2024 system upgrade that allows for maintenance without downtime .
Decentralization Concerns
While Lido holds a larger collective stake of approximately 9.4 million ETH, its distribution across multiple smaller node operators contrasts with Coinbase’s centralized control . Industry experts have raised concerns that such concentration could undermine Ethereum’s decentralization ethos. To mitigate these risks, Coinbase has diversified its validator operations across five countries—Japan, Singapore, Ireland, Germany, and Hong Kong—and utilizes multiple cloud providers and Ethereum clients .
Market Impact
In early March 2025, Ethereum’s price experienced volatility, reaching a high of $2,060.73 on March 20 before declining to $1,621.54 by April 15 . This fluctuation reflects the broader market’s mixed sentiments, with some analysts cautioning that a prolonged bear market could see ETH prices drop further.
Expansion Amid Regulatory Shifts
Coinbase CEO Brian Armstrong announced plans to hire approximately 1,000 new employees in the U.S. in 2025, citing a more favorable regulatory environment under President Donald Trump’s administration . This expansion represents a 27% increase in the company’s workforce, aligning with its strategic growth objectives.
