Kraken stakes 100,000 ETH on the new blockchain! Kraken stakes 100,000 ETH on the new Ethereum 2.0 blockchain for staking purposes. Kraken is one of the largest crypto exchanges in the world.
Within four days since the launch of the new blockchain, deposits to Ethereum 2.0 now stand at 1.4 million ETH, worth around $760 million dollars. The sum is locked for at least 2 years, taking the ETH out of supply.
Numerous exchanges have launched their Ethereum 2.0 staking services as well, so new ETH has continuously been making it to the deposit contract.
Depositors earn 5-15% depending on how many stake in total, with returns being given in the form of ETH.
“Kraken has long been a supporter of Ethereum. In fact, we were one of the first exchanges to list Ether in August 2015,” Jeremy Welch, Kraken’s VP of Product said before adding:
“We have watched as Ethereum has continued to grow in significance. As of December 1, ETH trading volumes typically make up between 15-40% of our Bitcoin daily volumes.”
The launch of Ethereum staking differentiates Ethereum from Bitcoin as it brings in new economics and potentially new investors in the form of climate change activist investors as ETH 2.0 relies on staking – not mining.
Climate change activists may be swayed by the shift from Proof of Work, as Bitcoin used, to Proof of Stake. Proof of Stake is more “renewable”, as it only requires depositing the cryptocurrency in question.
This chance could increase participation in validation and block rewards – custodian services like Kraken, Coinbase, Binance, Bitcoin Suisse, and others allow staking for as little as 0.1 ETH.
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