- Coinbase now manages 21% of all staked Ethereum, driving a 40% increase in rewards revenue.
- Institutional staking contributed $8.1B in assets, adding complexity to Coinbase’s reports.
- Data analysis shows Coinbase’s share of staked ETH increased to 14.1%, up from 8.1%.
According to reports, the percentage of staked Ethereum (ETH) that Coinbase controls now stands at approximately 21%. It is higher than the previous year’s, which is 15%. The crypto community shows increased interest as Coinbase stops sharing precise financial data in each of its last five quarters.
Blockchain rewards revenue for the company grew 40% quarter-on-quarter, totaling $215 million. This growth came despite custodied ETH balances being flat or down slightly. Analysts assert that this surge in revenue is being driven exclusively by increased staking activity. The relative stability of Solana staking which rewards its similar blockchain, suggests the most increase came from ETH staking.
Implied Shares Highlight Transparency Gaps
Data analysis estimates that Coinbase’s share of staked ETH hit 14.5% last quarter, with alternative triangulations putting the share as high as 21%. These numbers differ from different calculation methods and limited public disclosures from Coinbase itself. Coinbase provided more detailed information in earlier reports making estimating easier. But this practice ceased in 2024.
When institutions perform staking through Coinbase Prime the financial calculations regarding staking become more intricate. According to statistics from December 2024, institutional clients had more than $8.1 billion worth of assets they had staked. Coinbase faces questions about its transparency in financial reporting because it collects reward revenue from these held assets. Blockchain protocols award rewards directly to these clients, but no clear transparency exists regarding the aggregation of reward revenue at the custodian level.
Research shows that Coinbase controls 14.1% of all staked Ethereum (ETH) while previous assessments had placed it at 8.1%. Detailed tracking methods showed that 1.66 million staked ETH under Coinbase management accounts for 6% of the total staked Ethereum. The discovered significant transaction spikes within the Stakefish forked contract show both the advanced capabilities of blockchain analytics and Coinbase’s domination of the staking sector.
Market Implications and Future Trends
The increasing stake of Ethereum (ETH) held by Coinbase might alter the decentralization of the Ethereum platform. Control of substantial staking power by large centralized entities may affect how network governance and security operate. Holding low transparency about the amount of investable funds prevents regulators and investors from accurately determining Coinbase’s market control.
Related: SEC Pauses Coinbase and Binance Cases Amid Shift in Regulations
Lido Finance and other competitors give users real time information about staking activities, enhancing transparency. Institutional users who require transparent reporting will probably show preference differences because of this varying quality of information. More demand for staking services will likely drive Coinbase to resume detailed reporting about its activities to protect client trust and maintain competitive market positions.
