Binance, the world’s largest cryptocurrency exchange, is making moves with a new token. The crypto exchange has joined the growing market after Ethereum’s latest update. In this context, Binance has launched its new liquid staking token.
Binance has launched a new liquid staking token on ETH staking.
As you follow on Kriptokoin.com, staking withdrawals became active after Ethereum’s Shapella upgrade. Prior to this, liquid staking tokens were the best way to access and gain access to staking. Binance, the world’s largest cryptocurrency exchange, is rebranding its Ethereum staking product. Accordingly, it is launching a liquid staking token less than two weeks after Ethereum’s Shapella upgrade enabled staking withdrawals.
Binance’s new token will be Wrapped Beacon ETH (WBETH). The token will allow Binance users to participate in decentralized finance protocols off the exchange. Meanwhile, users will continue to earn Ethereum staking rewards while doing so. Starting Thursday, users can wrap Beacon ETH (BETH) tokens in WBETH and unlock WBETH into BETH tokens on the exchange’s Ethereum staking page. There will be zero fees for wrapping and unrolling these tokens.
The announcement stated that the initial conversion was one-to-one, but that could change as the value of WBETH will increase over time with the daily APR on Ethereum Staking. Liquid staking tokens allow holders to stake ETH. It also allows them to receive a derivative token representing the locked cryptocurrency. There is the possibility to use this derivative later in various crypto markets. Thus, it effectively liquidates locked coins.
Lido Finance dominates liquid staking!
According to data collected by Hildebert Moulie, a data scientist at Dragonfly Capital, the staking market is largely dominated by Lido, which holds around 31% of the market share. Lido Finance’s locked total value (TVL) has surpassed 6 million Ether (ETH), which equates to over $12 billion just days after the Shapella upgrade on Ethereum.
Bybit’s Head of Crypto Insights Charmyn Ho made a statement last week. Ho said that liquid staking is “ready to get the most out of the Ethereum Shapella upgrade.” In addition, Ho made the following statement:
Liquid staking tokens offer greater capital efficiency and flexibility compared to staking tokens. Because investors can earn staking rewards while maintaining the ability to freely move their funds.
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