JPMorgan Warns of Ethereum’s Increasing Centralization!

Crypto Live News

Author: Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

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JPMorgan shed light and warned that Ethereum’s recent staking growth has led to increased centralization and declining yields. The shift from proof-of-work to proof-of-stake enabled staking, but the major contributors to staking growth are liquid staking providers, such as Lido, which are seen to involve a high degree of centralization. The top five providers control over 50% of staking on the Ethereum network, with Lido alone accounting for almost a third. The analysts warned of the risks of centralization, including the potential for a single point of failure or an oligopoly that could promote their own interests over the community’s.

Source: https://coinpedia.org/crypto-live-news/jpmorgan-warns-of-ethereums-increasing-centralization/