February 17, 2021 | AtoZ Markets – Cryptocurrency exchange Coinbase has invited users to queue up to pay staking rewards on the ETH 2.0 network. The platform announced its support for ETH 2.0 staking back in November last year.
How to partake in Coinbase Ethereum 2.0 staking
To take part in it, you need to deposit at least 32 ETH to a special deposit contract. The exchange offers clients payments in the amount of 7.5% per annum of the deposit amount. This rate is lower than the official rate since it already takes into account the 25% platform commission.
However, as the Ethereum 2.0 network develops and the number of stakers increases, the annual rate will decline. Now, according to the ETH 2.0 Launchpad resource, 3.1 million coins have been deposited for staking and the current rate on the network is 8.9%. However, when the stake reaches 10 million coins, the yield will drop to 4.9%.
In addition, the exchange announced that it will soon allow trading in ETH tokens placed on staking. This is an important feature as these coins are locked in the deposit contract and users do not have access to them until the final launch of the ETH 2.0 network. This is predicted to happen sometime in 2022.
It is not yet known that the Ethereum 2.0 staking program on Cpinbase will work in full force. While you can only add to the waiting list, provided that you are not from New York. This functionality is not available for residents of this city.
Note that today the number of blocked ETH coins is 2.5% of all existing ones, and the total amount of funds exceeds $5 billion.
Institutional Investors Believe in ETH 2.0 Staking Too
The launch of the ETH 2.0 staking program has become the most anticipated event not only for retail investors but also for their institutional colleagues. According to Messari analyst Ryan Watkins, large corporate and institutional investors will join the staking program in 2021.
“Forecast for 2021: in 2021, institutions will start investing in $ETH. If you’ve already recognized Bitcoin as a valuable asset, it’s easier for you to take the next step and switch from $BTC to $ETH,” wrote Watkins.
In addition, institutional investors will start buying up Ethereum futures that are already traded on the Chicago Board of Trade (CME). The inflow of funds from institutions can push the price of Ethereum to new records, as happened with Bitcoin. Recall that the price of the main cryptocurrency reached a record historical mark of $ 50,000 thanks to the activity of large corporate investors.
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