Coinbase, the largest cryptocurrency exchange in the USA, offers many services to users. One of these services, Coinbase Prime, offers the main brokerage. The app launched a staking service for the leading altcoin Ethereum yesterday. Therefore, the market expects institutional money to flow into ETH. Meanwhile, the number of people staking their tokens is increasing as Merge approaches. Here are the details…
New service for leading altcoin from Coinbase
Coinbase Prime, the main brokerage offering of the largest US crypto exchange Coinbase, has launched Ethereum staking for its institutional investors. The company talks about sophisticated customers minimizing risks. He claims they can maximize the rewards while lowering the risks. This can be an attractive opportunity for institutional investors looking to generate returns by staking. The offer had completed its beta release last September. Then, Coinbase acquired the world-class brokerage platform Tagomi in May 2020, as reported by Kriptokoin.com. Coinbase Prime also supports Solana, Polkadot, Tezos, and other cryptocurrencies.
“Securing customer funds is our highest priority,” Coinbase’s blog post said. It says all withdrawal keys are kept in the firm’s cold wallet. He adds that staking transactions must complete the consensus before they can be executed. This means that the transaction must be added to a Blockchain before it can be considered valid. Staking is only possible on Blockchains that use the proof-of-stake consensus mechanism. By forcing the stakers or validators to make a financial gain, they are discouraged from behavior that could endanger the network and ultimately lower the price.
Merge excitement for Ethereum
Meanwhile, users of the second largest Blockchain are excited about Merge, which is expected to happen in September. Due to its much anticipated merge upgrade, Ethereum is currently on the agenda. Merge will enable Ethereum to transition from proof-of-stake to proof-of-work. Staking on the proof-of-stake chain is equivalent to PoW mining. Stakes have the opportunity to earn returns for their transaction verification efforts on the PoS Blockchain. As we mentioned above, this also helps to secure the network.
Ethereum advocates must deposit 32 ETH into the stake pool to assume validator status as Merge approaches. While it is possible to stake less ETH, the minimum required to activate one’s own validator software is 32 ETH. Currently, the value of staked ETHs represents 11 percent of ETH’s total circulating supply of 121 million tokens. So, there are 13,876,398 ETH tokens staked. The total number of independent validators is 411,587. These values are expected to increase as most crypto institutional investors are concentrated in the US. At the time of writing, ETH is trading at $1,585, down 5.8 percent.
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