Santiment data shows 2 addresses controlling over 45% of Ethereum transactions post-merge
According to Santiment data, two addresses have processed over 45% of Ethereum (ETH) transactions since the blockchain network completed its transition to a Proof of Stake (PoS) consensus mechanism.
📊According to us #Ethereum Post Merge Inflation Dashboard, 46.15% #proof of stake Nodes for storing data, processing transactions, and adding new #Blockchain A block can only be attributed to two addresses. This overwhelming dominance with these addresses requires caution. pic.twitter.com/KQdFNgGloD
— Santiment (@santimentfeed) September 15, 2022
According to Market Intelligence Platform’s post-merger inflation dashboard: 46.15% of “nodes for storing data, processing transactions, and adding new nodes” blockchain A block can result from just two addresses. “
According to the data, the firThe t address verified 188 blocks representing 28.97%, while the second address verified 105 blocks representing 16.18% of the nodes. The third address verified 54 blocks representing 8.32%.
Santiment says the predominance of the two addresses, which account for over 45% of verified blocks, is “remarkable.”
centralization concerns
Members of the crypto community have begun to raise concerns about Ethereum decentralization based on Santiment data.
The JPM/banking conglomerate has a network (they don’t have to enforce Metcalfe’s Law, they’re already there – think MySpace) and through ETH they say ETH is a decentralized technology. Trying to sell mother of all fake stories – meanwhile owning Metamask, Quorum, etc.
—EgissonW (@EgissonW) September 15, 2022
Meanwhile, one user criticized Santiment’s comment that the address was a flashbot relay made up of thousands of validators using a single relayer. So these addresses are just relay addresses and may not be the only validators.
What a lazy article. These are flashbot relays. A relay is made up of tens of thousands of people, or validators, but appears on the network as one of the proposers of a block because the relayer is one of them.
— timjanssen.eth (@thwjanssen89) September 15, 2022
Prior to the merger, several industry stakeholders repeatedly addressed centralization concerns within the space. Over 64% of his staked Ethereum is controlled by five entities, three of which are centralized exchanges. Decentralized staking platform Lido (LDO) DAO alone holds 31%.
Wallet belongs to Coinbase and Lido
In a separate tweet, Gnosis co-founder Martin Köppelmann revealed that the two wallets belonged to Lido and Coinbase.
Of the last 1000 blocks, 420 were built solely by Lido and Coinbase.
— Martin Köppelmann 🇺🇦 (@koeppelmann) September 15, 2022
Köppelmann also tweeted that the top seven entities control two-thirds of the stock.
Top 7 entities with over 2/3 of stake are pretty disappointed to see tbh pic.twitter.com/VBipyFUM7g
— Martin Köppelmann 🇺🇦 (@koeppelmann) September 15, 2022
Should the industry worry?
Nodes play an integral role in Ethereum’s staking mechanism as they pledge tokens for a chance to generate the next transaction block.
The dominance of the two wallets early in the merger defeats the purpose of Ethereum’s decentralization, but is not enough to conclude that the PoS network is centralized.
Meanwhile, the merger enthusiasm is not reflected in Ethereum’s positive price performance. According to Coinglass, the value of the asset fell below the $1,500 level after about $70 million of long positions were liquidated. data.
