Coinbase has unveiled its inaugural Ethereum Validator Performance Report, showcasing comprehensive metrics about its significant presence in the Ethereum staking ecosystem. The report confirms the cryptocurrency exchange operates 120,000 validators that collectively manage 3.84 million staked ETH, representing 11.42% of Ethereum's total staked supply.
"We're excited to announce our first Ethereum Validator Performance Report, marking a new level of transparency in our ETH staking operations," the company stated in a March 19 post on X. Beyond its direct staking operations, Coinbase reported an additional 581,500 ETH staked through its partnership networks.
The exchange highlighted its perfect record regarding slashing incidents—a punitive measure on the Ethereum network where validators lose staked funds for rule violations. Since launching validator operations, Coinbase has maintained zero cases of slashing or double signing, a critical security metric for institutional staking providers.
Performance data from February 2025 showed the platform achieved an average uptime of 99.75%, exceeding its 99% target threshold. Coinbase attributed this robust performance to structural upgrades implemented last year that enable beacon node maintenance without disrupting validator operations.
Interestingly, the company explicitly stated it does not pursue 99.9% uptime, prioritizing security measures over marginal performance gains that might introduce slashing risks. The validator participation rate, which tracks the execution of consensus duties, matched the uptime figure at 99.75% in February.
Coinbase has implemented a geographic distribution strategy to enhance network resilience and regulatory compliance. Its validators operate across five countries including Japan, Singapore, Ireland, Germany, and Hong Kong, while utilizing both AWS and Google Cloud Platform for infrastructure redundancy. This multi-region approach helps mitigate failure risks and accommodates varying regulatory requirements across jurisdictions.
The report detailed Coinbase's contingency capabilities, noting that its validator orchestration system can migrate workloads with minimal downtime during regional outages or cloud provider failures. This infrastructure has been successfully tested during scheduled maintenance periods and customer-driven migrations.
Client diversity forms another pillar of Coinbase's staking strategy. The company runs two consensus clients (Lighthouse and Prysm) alongside two execution clients (Geth and Nethermind) for its Ethereum validators. Coinbase monitors network-wide client distribution and indicated it is evaluating additional implementations to further diversify its technical footprint.
To optimize staking rewards while reducing centralization risks, Coinbase employs a relay diversification approach.
The exchange connects to six MEV (Maximal Extractable Value) relays, including Flashbots MEV-Boost Relay, bloXroute Max Profit Relay, and four non-censoring alternatives: ultra-sound relay, Agnostic Relay, Aestus MEV-Boost Relay, and Titan Relay.
This multi-relay structure enhances operational redundancy while broadening access to diverse block pools, according to the exchange. The company indicated this approach helps balance reward optimization with network health considerations.