Lido vs. Coinbase: Who Commands Ethereum’s Future?

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• Coinbase’s 11% stake in staked ETH raises ongoing concerns about structural centralized node control within Ethereum’s proof-of-stake framework.
• Future US-based ETH ETFs, if approved, may boost Coinbase’s role, amplifying further centralization fears among decentralization advocates worldwide.

Coinbase’s growing role as the largest Ethereum node operator is fueling a debate about the future of network distribution. In a recent report, the exchange disclosed that it controls 3.84 million ETH spread across roughly 120,000 validators, accounting for more than 11% of staked Ether.

Some observers worry that this ownership level could weaken the principle of decentralization in Ethereum, as centralized node operators may face external regulatory pressures or other constraints.

Web3 startup leader Karan Sirdesai describes this trend as a “systemic issue” in Ethereum’s staking structure, warning that a small cluster of dominant participants can undermine the network’s security foundation.

While Lido manages even more ETH than Coinbase overall, its staked holdings are distributed across numerous independent node operators. In contrast, Coinbase acts as one consolidated entity, even though it diversifies operations across multiple countries, cloud services, and Ethereum clients.

We now know how much ETH Coinbase has staked (11.42% of the total stake)

This, of course, makes Coinbase the single largest node operator on the network (Lido is bigger as a collective, but each node operator has a much smaller % share)

Kudos to Coinbase for the transparency! https://t.co/F3WEDdj0da

— sassal.eth/acc (@sassal0x) March 19, 2025

ETHNews analysts also point to upcoming regulatory shifts that could accelerate this centralizing effect. For instance, asset managers in the United States are seeking clearance to stake Ether for exchange-traded funds (ETFs). Coinbase, being a top custodian for US crypto ETFs, might gather an even larger share of staked Ether if such products move forward.

Industry leaders, including Temujin Louie at Wanchain, note that deeper centralization can bring censorship risks, especially if node operators must prioritize external compliance over network resilience. Others mention new US guidelines permitting banks to serve as blockchain validators, which may add further consolidation into regulated hands.

However, some market traders argue that increased institutional involvement might also distribute Ethereum staking. Robinhood, with its large user base and technical infrastructure, could emerge as a direct rival to Coinbase by offering its own staking services. If that happens, it might relieve the concentration threat by redirecting user deposits toward a different platform.

For now, the Ethereum community watches with a blend of caution and expectation. Coinbase’s role could expand if ETF approvals arrive, while new entrants like Robinhood might balance the ledger by drawing assets away from a single operator. The next phase of staking competition will clarify whether these developments strengthen or weaken Ethereum’s core principle of decentralized control.

As of March 28, 2025, the live price of Ethereum (ETH) is $1,871.86 USDT, reflecting a daily loss of −6.58%. ETH has traded today within a wide range between $1,860.00 (low) and $2,015.93 (high). This marks the continuation of a strong bearish trend that’s been unfolding over the past month.

Over the past 7 days, Ethereum has declined by −5.70%, while over the last 30 days, it has fallen −25.04%. On a broader time scale, ETH is down −43.95% year-to-date and −46.57% over the past year, placing it in a deep correction phase relative to its historical highs.

From a technical standpoint, Ethereum is currently struggling to hold above the $1,850 support region. A breakdown below this level could accelerate losses toward the $1,780–$1,700 zone. Resistance in the near term is now set at $2,000–$2,050, which must be reclaimed for ETH to regain short-term bullish momentum.

The MACD is widening bearish, and RSI is approaching oversold conditions, suggesting that although momentum is weak, a relief bounce is possible if the $1,850 level holds.