Cambridge research reveals 31% of Ethereum node activity concentrated in the US

Ethereum likes to bill itself as the world’s decentralized computer. But according to research from the Cambridge Centre for Alternative Finance (CCAF), nearly a third of that computer lives in one country, and a lot of it runs on Amazon’s servers.

The CCAF found that 31% of global Ethereum beacon node activity is based in the United States, with infrastructure heavily clustered on three cloud providers: Amazon Web Services (AWS), Hetzner, and OVH.

The cloud concentration problem

Ethereum currently boasts more than 880,000 validators, a number that has grown substantially since the network’s transition to proof-of-stake during the Merge in September 2022. In earlier analyses from 2022, AWS alone was found to host over 50% of Ethereum nodes. The reliance on three major cloud providers, AWS, Hetzner, and OVH, means that over two-thirds of total node share has at times been concentrated among just those platforms.

Historical data from the CCAF makes the trend clearer. As recently as November 2023, the US accounted for 37.2% of Ethereum nodes. Europe hosted 43.3%, and North America broadly represented 40.5%. The current 31% figure for US-based beacon node activity suggests some geographic redistribution has occurred.

Why jurisdiction matters more than you think

The CCAF dashboard explicitly emphasizes the need for greater geographic distribution to improve network security and resilience. Cloud providers experience outages, and when a large portion of Ethereum’s validator set depends on the same underlying infrastructure, a routine cloud outage becomes a potential network stability event.

What this means for investors

The network’s security model assumes a distributed validator set. The growth to over 880,000 validators post-Merge reflects genuine adoption of the staking model, but the concentration creates tail risks. Price stability could be affected if a major provider disruption or regulatory action suddenly took a significant percentage of validators offline.

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