A joint research report from ARK Invest and Glassnode argues that Bitcoin and Ethereum could each reach key control thresholds with the coordinated action of only three entities, a finding that reframes how decentralization is measured across the two largest networks.
A joint research report from ARK Invest and Glassnode argues that Bitcoin and Ethereum could each reach key control thresholds with the coordinated action of only three entities, a finding that reframes how decentralization is measured across the two largest networks.
The report, published as The Decentralization Spectrum, examines how concentrated control actually is on major blockchains rather than relying on the assumption that a large validator or miner count guarantees distributed power. Its central claim is that the number of separate entities required to reach a critical control threshold is far smaller than most participants assume. For related coverage, see Bitcoin Surges to $93,000 Amid Fed Rate Cut Speculation.
WHAT TO KNOW
- ARK Invest and Glassnode report that Bitcoin and Ethereum can each reach a key control threshold with as few as three entities.
- The finding measures theoretical concentration, not proof of coordinated real-world control.
In this context, an “entity” refers to a distinct controlling party, such as a mining pool, staking provider, or custodial operator, rather than a single individual wallet. A “control threshold” is the share of a network’s block production or validation capacity at which a group could, in theory, exert outsized influence over how the chain behaves. For related coverage, see Bitcoin Whales Sell 29,400 BTC Amid Market Concerns.
Why Three-Entity Concentration Matters for Bitcoin and Ethereum
The significance is structural. Both Bitcoin and Ethereum are routinely evaluated on their resilience and distributed control, so a report showing that so few entities sit near a critical threshold speaks directly to the properties that give each network credibility. The methodology appendix sets out the scoring reference ARK and Glassnode used to compare networks on a common basis.
For Bitcoin, concentration questions have historically centered on mining pool aggregation, an issue Glassnode has examined before in its work on how supply and address behavior expose structural risks. For Ethereum, the relevant concentration sits among staking and validation providers rather than miners, given its proof-of-stake design.
A crucial distinction runs through the report: reaching a threshold in theory is not the same as coordinated control in practice. Three entities holding enough combined capacity to cross a threshold does not mean they act together, and the report frames the finding as a measure of latent concentration rather than active manipulation.
What This Means for the Broader Decentralization Debate
The finding feeds an ongoing debate over whether the largest networks are as decentralized as commonly assumed. Because the study covers Bitcoin and Ethereum together, and extends to other chains in follow-up work such as ARK and Glassnode’s second research paper, it reads as a sector-wide governance question rather than a single-chain story.
Concentration metrics shape narratives, and a report from two established research names carries weight in how investors and analysts frame decentralization going forward. The same lens has informed recent Glassnode analysis of how Bitcoin market structure is interpreted and its flagging of rare statistical moves in Bitcoin.
For Bitcoin specifically, the entity-count framing turns attention back to network fundamentals that underpin its security model: the distribution of hashrate across mining pools and the resilience of block production remain the metrics that determine how far the network sits from any control threshold.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
