Ethereum Top Stakers Control 48% of ETH Staked in “Potentially Unhealthy” Centralization – Flip Side

There is a stark difference between ethereum and Polygon staking concentration.

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 bet is dominated by a few

According to Flipside’s “Year-Over-Year PoS Staking Report” shared with cryptopotatoFrom September 2023 to 2024, the top 10 ethereum stakers consistently controlled nearly half (around 47-48%) of the total eth staked, reflecting a stable but concerning level of centralization in its staking ecosystem.

This lack of movement toward greater decentralization could raise red flags about the network's dependence on a few dominant actors.

“The stable concentration in the ethereum staking ecosystem suggests that the chain remains centralized to a (potentially unhealthy) degree and there has been no significant move towards decentralization or further consolidation in the past year.”

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

Since September 2023, 8 of the top 10 ethereum stakers have maintained or expanded their holdings in PoS eth. Meanwhile, Lido remains the dominant player in ethereum PoS staking, increasing its stake from 8.8 million to 9.8 million eth during this period. Despite growing competition and notable Lido exits among Polygon stakers, Lido's growth on ethereum has remained undisturbed.

Steady inputs 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 increase occurred between January and February 2024, when staked eth increased from 29.6 million to 31.4 million, an increase of 6%.

This surge coincided with growing speculation about the possible SEC approval of ethereum futures ETFs and increased market activity, which likely prompted more users to engage in staking.

Another period of notable growth occurred between May and June 2024, where staked eth increased by one million, reflecting the enthusiasm following the successful Shanghai upgrade. Flipside noted that this update introduced key optimizations and reduced fees, which likely contributed to the increase in betting activity.

ethereum also experienced steady net inflows of staked eth at the time without significant periods of net outflows. On average, monthly net inflows ranged from 600,000 to 1 million eth, with the highest inflow being recorded in February 2024.

The figures peaked at 1.8 million eth. This steady growth reflects strong user confidence in ethereum's staking rewards and the overall appeal of the network. Tether's expansion in November 2023, when 4 billion USDT was minted on ethereum, likely contributed to the increase in network activity.

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