Coinbase Loses Market Share in Ether Staking as Regulatory Pressure Mounts
The exchange’s share in ETH staking dropped to 9.7%, the lowest since May 2021. The SEC sued the company in June for offering unregistered securities.
Crypto exchange has lost market share in the booming ether () staking business as mounting pressure from U.S. regulators weighs on its staking service.
The exchange’s share in ETH staking slipped to 9.7%, the lowest level since May 2021, according to a by digital asset investment product-issuer . This is a significant drop from the 13.6% recorded on April 12, when Ethereum’s allowed withdrawals for the first time.
The downturn has happened as the demand for – locking up tokens to participate in securing the blockchain while earning a passive income on holdings – . The Shanghai upgrade unleashed a wave of deposits to staking, with inflows outpacing withdrawals by some , worth $7.3 billion at curren t prices.
Coinbase, however, suffered a net outflow of $517 million (272,315 ETH) during the same period, the second-largest amount after rival crypto exchange Kraken.
“A potential reason could be that investors do not want to be exposed to regulatory risk by using Coinbase’s staking services,” Tom Wan, analyst at 21Shares, told CoinDesk in a note.
Kraken was by the U.S. Securities and Exchange Commission () earlier this year and shuttered its service for U.S. customers as part of a settlement with the agency.
On June 6, the SEC also a lawsuit against Coinbase for violating federal securities laws, including offering to users with its staking service. However, the exchange said it remained committed to .
Since the lawsuit, Coinbase has withdrawn some 149,300 ETH from Ethereum’s network, while depositing only 52,992 tokens, compiled by 21Shares shows. The $183 million net outflow indicates that users were unstaking tokens and fleeing the exchange.
Coinbase still held its position as the second largest staking service provider, but fast-growing rivals such as Figment, RocketPool and Kiln have been closing the gap, a shows.
The exchange takes a on user rewards earned by staking, so a decrease in the amount of staked tokens means less revenue.
Edited by James Rubin.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The PENGU USDT Sell Alert: Is This a Turning Point for Stablecoin Approaches?
- PENGU/USDT's 2025 collapse triggered a $128M liquidity shortfall, exposing algorithmic stablecoin fragility and accelerating market shift to regulated alternatives. - USDC's market cap surged to $77.6B by 2025, while MiCA-compliant euro-stablecoins gained $680M in cross-border adoption amid regulatory clarity. - DeFi protocols adopted oracle validation and reserve-backed models post-PENGU, reducing exploit losses by 90% since 2020 through institutional-grade security upgrades. - Regulators now prioritize
Emerging Prospects in EdTech and AI-Powered Learning Systems: Ways Educational Institutions Are Transforming Programs and Enhancing Student Achievement
- AI is transforming education by reshaping curricula, enhancing student engagement, and optimizing institutional efficiency. - Universities like Florida and ASU integrate AI literacy across disciplines, offering microcredentials and fostering innovation. - AI tools like Georgia Tech’s Jill Watson and Sydney’s Smart Sparrow boost performance and engagement through personalized learning. - AI streamlines administrative tasks but faces challenges like ethical misuse and skill gaps, requiring structured train
Anthropological Perspectives on Technology and Their Impact on Education and Workforce Preparedness for the Future
- Interdisciplinary STEM/STEAM education integrates technology tools like AI and VR to bridge theory and real-world skills, driven by $163B global edtech growth. - U.S. faces 411,500 STEM teacher shortages and 28% female workforce representation gaps, prompting equity-focused programs like Girls Who Code. - STEM occupations earn $103K median wages (vs. $48K non-STEM), with 10.4% job growth projected through 2033, driving investor opportunities in edtech and workforce alignment. - Strategic investments in t
The Revival of Educational Technology in Higher Education After the Pandemic
- Global EdTech market grows to $7.3T by 2025, driven by hybrid learning and AI/AR/VR adoption in higher education. - Institutions like MIT and Harvard integrate AI across disciplines, boosting enrollment and workforce alignment through $350M-$500M investments. - EdTech platforms enabling personalized learning and immersive experiences see rising demand, with 45% annual growth in AI-related programs since 2020. - Undervalued EdTech stocks offer investment opportunities as $16B+ VC funding accelerates innov
Trending news
MoreCrypto prices
More
