Coinbase Starts Offering Eth2 Staking, Over 3.8 Million ETH Already Deposited in ETH 2.0
The waitlist to earn staking rewards with ETH2 is now live on Coinbase, announced the exchange. New York State residents, however, are not currently eligible to sign-up for this service.
The exchange first announced support for ETH2 last fall.
While Coinbase is yet to start offering ETH2.0 staking, since the launch of Beacon Chain in December, almost 3.87 million ETH worth about $9.55 billion have been deposited in the network, as per Dune Analytics.
Upgrading to Ethereum 2.0 will shift the network consensus to proof-of-stake (PoS) and improve speed, efficiency, and scalability.
The largest cryptocurrency exchange in the US will be offering a 6% APR in rewards; however, it is based on the estimated Ethereum 2.0 network rate, which changes as more ETH2 is staked.
To get started with the staking on Coinbase, there is no minimum amount required. Once staked, those Ether won’t be available for use or sell, but Coinbase expects to offer a way to trade any staked Ether in the coming months.
While staking rewards reached 9.9% APY in January 2021 for early participants, today, it is ~8.5% APY as more validators join the network.
“Cryptocurrency exchanges, funds, and custodians recognize that holding ETH bestows a powerful position within DeFi. As the Ethereum DeFi ecosystem grows, holding ETH will be integral to application operations and transaction execution,” it noted.