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Crypto exchange Coinbase will handle all the technicalities and will simplify things for users without having them go through the difficulty of staking tokens individually.
On Wednesday, June 29, cryptocurrency exchange Coinbase announced staking support for Ethereum Layer-1 competitor Solana. This is the seventh cryptocurrency available for staking on the Coinbase crypto exchange.
The minimum starting balance that a user needs to have for staking Solana is as little as $1. Also, Coinbase shall be offering payouts every 3-4 days. As per the report, users are likely to earn an estimated annual return of 3.85% APY.
Besides, cryptocurrency exchange Coinbase will itself take care of the node set-up process and other technical details. This will simplify things for users without having them go through the difficulty of staking tokens individually.
Crypto staking services allow token holders to assign their digital assets to validators. In return, these stakers get monetary rewards also called staking rewards. Different blockchains have different staking rewards. The official announcement from Coinbase notes:
At Coinbase, we’re focused on offering more ways for customers to earn crypto rewards. Today, we’re announcing the expansion of our staking offerings to include Solana (SOL) with plans to continue to scale our staking portfolio in 2022. Solana staking will be progressively rolled out to all eligible customers.
Coinbase Explains Benefits of Staking
- Upon buying Solana on the Coinbase exchange, investors will automatically start earning staking rewards. As said the rewards yield is currently 3.85%. Since Solana has corrected highly from its all-time highs, this could be a great opportunity for long-term holders and believers of the project.
- Users have absolute control over their funds and can decide to opt out anytime. Users can start earning rewards with as little as $1.
- Since Coinbase handles all the technical stuff with respect to staking, users get absolute peace of mind. Coinbase will provide security measures and mitigate the risks associated with individual staking.
In the announcement, crypto exchange also Coinbase notes: “The Solana network sets the underlying return rate depending on the number of staking participants. Coinbase distributes the return to customers, less a commission”.
After Ethereum, decentralized blockchain Solana also remains as one of the preferred choices to build smart contracts, DApps, DeFi projects, NFTs, etc. However, the Solana network has been facing issues of downtime multiple times over the last year. Thus, the developers really need to fix things in order to grow the user base.