Binance US, the US-based subsidiary of the world’s largest cryptocurrency exchange, is now offering Ethereum stakes with a 6 percent annual percentage yield (APY) — a figure that’s a big step up from major rivals like Lido and Coinbase that offer 3.5 percent. and 3.25 percent APY, respectively. In an announcement, Binance US said users will be able to competitively stake ETH through the platform for as little as 0.001 ETH. To stake ETH directly through the Ethereum network, the user otherwise needs to hold at least 32 ETH.
“As the Ethereum network continues its transition to The Merge, we are thrilled to now offer ETH staking with some of the highest APY rewards in the industry,” said Binance US CEO Brian Schroder. In a press release,
Data from StakingRewards shows That the number of users using ETH has increased to 54,800 since last month. However, the average revenue from ETH staking has dropped from $1.68 billion (roughly Rs. 13,400 crore) to $937 million (roughly Rs. 7,500 crore) on August 13. The decline was largely due to ETH’s fall from $2,000 (roughly Rs. 1,60,000) in mid-August.
The “merge” refers to Ethereum’s long-awaited upgrade to the network’s consensus layer, known as the Beacon Chain, with its execution layer, which is the current Ethereum mainnet. The merger will complete Ethereum’s transition from a proof-of-work consensus mechanism to proof-of-stake.
The merger is currently expected to take place sometime between September 13 and 15. After that, Ethereum users will be able to stake their ETH to help secure the network while earning passive ETH rewards in the process.
Users will be allowed to withdraw their staked ETH from the Ethereum network after another upgrade referred to as the “Shanghai Upgrade” which is dependent on the successful completion of the Merger Upgrade.
However, due to the complexity of the upcoming merge upgrade, there is no guarantee of a smooth transition and users’ funds are subject to risks such as prolonged return on invested funds or loss of funds if the upgrade fails.
