Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
Add to Google Preferred Sources
ARK Invest and Glassnode published a joint study comparing decentralization across Bitcoin, Ethereum, and Solana, finding Bitcoin the most decentralized overall but noting no network leads in every category. Bitcoin scored highest in auditability, ownership distribution, and geographic resilience, with 63% of its nodes behind Tor. The Nakamoto coefficient showed three entities could control Bitcoin and Ethereum, versus 19 for Solana. Ethereum has nearly half its nodes on cloud providers, while Solana runs almost entirely in data centers. The report includes no price targets, aiming instead to standardize how institutional investors assess network risk.
Key Elements
A new joint study from ARK Invest and Glassnode finds that Bitcoin remains the most decentralized among the three largest blockchain networks, though the researchers caution that no single chain dominates every measure of decentralization.
The report, published <a href="https://xpertsstudio.com/what-price-will-xrp-hit-in-september-odds-prediction-market-analysis/” title=”What price will XRP hit in September Odds & Prediction Market Analysis”>September 1, compared Bitcoin, Ethereum, and Solana across dimensions including auditability, ownership distribution, security governance, node participation, and geographic concentration. Bitcoin scored highest in auditability, ownership distribution, and geographic resilience. Ethereum occupied the middle ground, while Solana leaned more toward performance and coordination speed.
The researchers stressed that the findings should be read as a comparative spectrum rather than a definitive ranking. Each network makes distinct trade-offs between decentralization, security, and performance, and those choices reflect fundamentally different design philosophies.
Mining pool concentration surprises
One of the more striking findings involves the Nakamoto coefficient, a metric that measures how many entities would need to collude to gain meaningful control over a network. For Bitcoin, just three mining pools control more than 51% of the network’s hash rate. Ethereum showed a coefficient of three as well, based on a 33% staking threshold. Solana’s coefficient was considerably higher at 19 entities.
However, the analysts noted that mining pools do not necessarily own the underlying mining hardware. Individual miners can move their hashing power between pools, which means pool-level concentration may overstate the actual risk of collusion.
Infrastructure resilience varies widely
The study also highlighted significant differences in how each network’s infrastructure is distributed. Roughly 63% of Bitcoin nodes operate behind Tor, while only 16% are hosted in data centers, making the network far less dependent on centralized hosting providers.
Ethereum presents a different picture. About 49% of its nodes run on cloud providers, with roughly 20% on Amazon Web Services (AWS). Solana runs nearly all of its infrastructure in data centers, a reflection of the heavier hardware demands required to operate its high-throughput network.
Institutional allocators are increasingly weighing decentralization when assessing long-term risk in digital assets. A network that concentrates control among a small number of validators or developers may carry different risks than one with a broad, dispersed base. ARK Invest has published extensive digital asset research in the past, and Glassnode is known for its on-chain data analysis capabilities. Their combined report suggests an attempt to standardize how these risks are discussed in due diligence processes.
The research arrives amid broader industry debate about market structure and regulatory clarity. Regulators in multiple jurisdictions have referenced decentralization as a factor in how they classify tokens. A clearer framework for measuring it could influence future policy conversations, even if this particular report is aimed primarily at investors and researchers rather than regulators.
The report does not include price targets or trading recommendations. Its likely impact lies in shaping how institutional investors discuss network risk when comparing the three assets.
At the time of the study’s release, Bitcoin was trading around $77,820, down 0.9% over the prior 24 hours. Retail sentiment on Stocktwits had dipped to neutral from bullish, with chatter levels decreasing from high to normal.
Ethereum traded around $2,444, down 1% over the same period, with retail sentiment remaining in bearish territory. Solana traded around $102, also down 1%, but retained bullish retail sentiment and high chatter levels.
| Network | Nakamoto Coefficient | Nodes Behind Tor | Nodes in Data Centers |
|---|---|---|---|
| Bitcoin | 3 (51% hash rate threshold) | ~63% | ~16% |
| Ethereum | 3 (33% staking threshold) | N/A | ~49% on cloud providers |
| Solana | 19 | N/A | Nearly all |
Note: The Nakamoto coefficient represents the number of entities required to collude to gain significant control. Bitcoin’s figure reflects mining pool concentration, while Ethereum’s reflects staking concentration.
Both Bitcoin and Ethereum have faced periodic debates over mining and staking concentration. Solana has drawn separate scrutiny over network outages and validator hardware costs, which some critics argue raises the barrier to running a validator. The joint report adds a new data point to these ongoing conversations without resolving them outright.
Over time, research like this may also influence how index providers and ETF issuers weigh network characteristics in product design. ARK Invest has an active presence in digital asset investment products, which could make this framework relevant to its own future fund strategies.
Once added, BigGo Finance appears first in Google Search Top Stories, so you get the broadest, most up-to-the-minute, and most comprehensive global financial news first.
Source: finance.biggo.com