Ethereum staking is highly centralized but voting power less so

Ethereum staking is facing scrutiny for being overly centralized. The data shows that staked ether is highly concentrated to a small set of large depositors but doesn’t equate to the same centralization of voting power.

As of Sep 20, there are close to 14 million ether staked on the Beacon chain, equaling 11.5% of the total ether supply.

Each Ethereum validator node doesn't gain voting power when surpassing the minimum validator requirement of 32 ether. The validator set, therefore, becomes large in numbers as single entities will spread staked ether on multiple validator nodes. In terms of centralization, the interesting statistic is how many validators are controlled by single entities.

Scratching the surface by looking at staking depositors, Ethereum voting power appears to be highly centralized. The five largest stakers have deposited more than 60% of the staked ether.

Source: Dune Analytics

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