Cryptocurrency

Santiment data shows 2 addresses controlling over 45% of Ethereum transactions post-merge

Zegex

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 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.

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.

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.

Köppelmann also tweeted that the top seven entities control two-thirds of the stock.

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.

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