JPMorgan analysts: The surge in Ethereum staking makes the network more centralized

ChainCatcher news, according to The Block, a team led by JPMorgan analyst Nikolaos Panigirtzoglou stated in a report that the increase in Ethereum staking since the merge and Shanghai upgrade has come at a cost, as the Ethereum network has become more centralized, and the overall staking rewards have also decreased.

The main contributors to the growth in staking are liquid staking providers, such as Lido. JPMorgan analysts stated, "The top five liquid staking providers control over 50% of the staking on the Ethereum network, with Lido accounting for nearly one-third. This involves a high degree of centralization. The total staking rewards have decreased from 7.3% before the Shanghai upgrade to the current approximately 5.5%."