Senior Quantitative Analyst, Saxo Bank
Summary: The optionality to stake ETH to earn rewards in the Ethereum 2.0 framework is now becoming easier to access as digital currency exchanges expand their offerings, allowing more users to participate in validating transactions.
With the ETH 2.0 upgrade launched in the end of last year, the Ethereum network is in an ongoing process of moving away from validating transactions through mining to a proof-of-stake framework. Holders of ETH can stake a part of their ETH in order to receive rewards for verifying transactions – or lose a part of their stake if failing to verify.
In the new framework, a validator will as a standard need to stake 32 ETH to run a validator node on Ethereum’s new blockchain, or the person will have to locate some of the staking pools on the internet, allowing participation with less ETH. As a new initiative, the crypto exchange Coinbase has launched a waitlist where holders of ETH will be able to stake any amount of ETH from their account. This increases the accessibility for smaller players for joining the validation, as well as getting a part of the validation rewards. It will broaden the span of people who are staking and thus can increase the security on the network, although it in this case still will go through Coinbase as the bigger player. The trend of offering the possibility of ETH staking to a wider audience may likely be seen on more digital currency exchanges in the near future.
The evolution of the Ethereum 2.0 upgrade may be followed here, where the two charts below are also taken from.
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Commodity Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Head of Commodity Strategy
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)