Is Ethereum becoming more centralized after two major upgrades?
A recent research analyzes the effect of The Merge and Shanghai. JPMorgan’s new report shed light on Ethereum’s greater centralization after The Merge and Shanghai, the two major upgrades of the network in a year.
According to the insight, the transition from Proof-of-Work to Proof-of-Stake has seen a surge in Ethereum staking. However, this has led to a decline in the overall staking yield and the growing centralization.
People don’t want highly centralized systems, but it looks like Ethereum is going in that direction.
Greater Centralization, Less Yield
As reported, the total staking yield for Ethereum has decreased to around 5.5%. Before the Shanghai upgrade, this figure stands at 7.3%.
Lido Finance is a go-to alternative for interested people who want to stake Ethereum without relying on a centralized entity. The protocol additionally has taken steps to mitigate…
