The post JPMorgan Warns of Ethereum’s Increasing Centralization! appeared first on Coinpedia Fintech News
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.
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