On Wednesday, the largest American-based crypto exchange, Cardano, revealed that its platform will start supporting Cardano staking services. A top-level executive with the company remarked that Coinbase’s choice to offer Cardano staking services was simple because the network ranks among the top ten blockchains. This blockchain is based on a pos algorithm that is flexible, scalable, and sustainable.
Staking Cardano In Coinbase Is Easy And Secure
Part of the announcement states that Cardano holders can stake their tokens on the Coinbase platform. Cardano’s head of product management, Rupamalini Sahu, clarified that staking Cardano through Coinbase offers more security and is more accessible even though holders can stake individually by delegation.
Sahu further revealed that Coinbase offers 3.8% APY under the current staking arrangement, and users are eligible for their rewards after a 25-day probationary period. A blog post on the Coinbase website referencing the announcement and clarifying details claims that holders remain in total control of their tokens. They only need to keep and stake their tokens on Coinbase to be eligible for yield rewards.
The blog post also states that any staker can opt-out as there are no contractual obligations for any specific time. Sahu added via a blog post on his website that “the number of staking participants determines how the network calculates the annual percentage yield. Cardano stakers through Coinbase will receive the yield returns from Coinbase after the exchange deducts its commission.”
Coinbase’s Rising Number Of Staking Products
Sahu also remarked that Cardano is the fifth staking product Coinbase will be supporting, and the exchange plans to add more staking products before this year is over. Coinbase’s business seems to continue as usual despite facing a class-action court case. The Nasdaq-listed is alleged to have listed about 80 unregistered securities, including the Cardano.
A few hours after Coinbase officially confirmed the Cardano staking product, the price of Cardano’s native token (ADA) surged by about 25%. Besides Cardano, Coinbase users are eligible to stake ALGO, ETH, XTZ, and ATOM. However, each of them has different APY returns.
Cardano’s Market Cap Spikes In The Last Week
Like other smart contract networks, Cardano has been slightly bullish since the beginning of the week, with the token price surging past $1. The good news is that the network’s market cap has also been rising, with more than $11b added this past week. The current CoinMarketCap data shows that Cardano’s overall evaluation stands at $39.46b, representing a 38% increase within seven days as it was $28.8b this time last week.
This vast increase in market cap has pushed Cardano to rank as the seventh biggest digital asset. Also, Cardano’s TVL has been increasing gradually over the past ten weeks and is nearly $319m as of Thursday. Data from the crypto analytics platform, Defi Llama, shows that this network’s TVL rose by 1.63% over the past 24 hours.
In a recent interview, Cardano co-founder, Charles Hoskinson, claimed that whatever TVL the network reached before the Vasil upgrade would quadruple after the upgrade. Many market players hope that Cardano can maintain this momentum for long.
