Last month Kraken launched its Ethereum 2.0 staking service, which makes it easy for ETH holders to earn rewards of approximately 5% or more and help support the upgrade to Ethereum 2.0.
Staking is an opportunity that is only appropriate for clients who want to hold their ETH long-term, because staked ETH cannot be unstaked and, along with staking rewards, cannot be transferred for an unknown period of time (because it is uncertain when exactly transfers will be enabled on the Ethereum 2.0 network).
The launch has been a huge success, with clients already staking more than 350,000 ETH through Kraken.
Due to the extreme popularity of Ethereum 2.0 staking, not only on Kraken but across the entire network, it currently takes about 3 weeks for a new validator to go live on the network and start earning rewards (the Ethereum 2.0 protocol limits the number of new validators to 900 per day). This means that newly staked ETH currently does not start earning rewards for approximately 3 weeks.
When we first launched our staking service, we allowed newly staked ETH to share the rewards, even if the validators behind that new ETH hadn’t come online yet. While this meant that new stakers could start earning rewards more quickly, it also meant that old stakers were earning a lower reward.
To make the staking rewards on Kraken better aligned with the network rate, we are introducing a bonding period for newly staked ETH. This means that when you stake new ETH with Kraken, there will be a waiting period before you start earning rewards. After the waiting period, however, you will get a higher reward because you won’t be sharing the reward with new stakers.
Note that this waiting period is not unique to Kraken. The long delay in adding validators is an issue across the entire network. So even if you stake ETH yourself directly on the network, you will still have to wait before earning rewards.
How long is the bonding period?
To start, the bonding period will be set at 20 days. This means that new ETH stakers can expect their rewards to begin accruing 20 days after staking on Kraken. Going forward, the length of this bonding period is expected to vary depending on network conditions.
When will the new bonding period go into effect?
The bonding period goes into effect immediately, so any newly staked ETH will be subject to the bonding period before earning rewards.
How long will it take for the reward rate to normalize?
Since the bonding period is 20 days, it will take this many days for bonding to become fully effective at normalizing the reward rate. This means that the reward payouts will gradually normalize over the next few weeks.
What about clients who may have received a lower reward before the bonding period was introduced?
We have identified the accounts of clients who staked with Kraken before the bonding period was introduced, and may have received a reward that was smaller than expected as a result.
If your account may have been affected, we have already emailed you. There is no need to respond or contact Kraken at this time.
Affected accounts will be credited at a future date and we will send a second email once all credits have been issued. It may take up to 4 weeks to accurately determine credit amounts and get everyone credited.
Take advantage of our ETH2.S/ETH market (NOT available in the US or Canada)
As previously announced, we have listed a market for trading between staked Ethereum 2.0 (ETH2.S) and unstaked Ethereum (ETH). This market is represented by the ETH2.S/ETH trading pair. It has a number of advantages:
- While staked ETH cannot be unstaked, it is possible on Kraken to sell your staked ETH (ETH2.S) for ETH.
- If you buy staked ETH (ETH2.S) on Kraken’s market, you do not have to wait to earn rewards, because the staked ETH on the market has already gone through the bonding period (you cannot trade ETH2.S that is still in the bonding period).
- Staked ETH (ETH2.S) is currently trading at a slight discount on the market, meaning you may be able to get a bit more staked ETH through the market than you would just by staking.
There are important caveats about the ETH2.S/ETH market, however: The market may have limited liquidity. Price slippage in market orders should be expected and it may be difficult to exchange staked ETH for unstaked ETH in large amounts or at all. We offer no guarantees of any kind about the continued availability of this market – it may not be available for the duration of the Ethereum 2.0 transition. And again, this market is NOT available for users located in or residents or citizens of the US and Canada (these clients can stake ETH, but not trade their staked ETH for unstaked ETH).
Finally, keep in mind that staked ETH cannot be unstaked and, along with staking rewards, cannot be transferred for an unknown period of time. Make sure you understand the details of the Ethereum 2.0 network transition and our fee structure before staking on Kraken.
Thanks to the Ethereum community for making Kraken the leading staking service. We’re proud to help support the transition to Ethereum 2.0 and look forward to exploring all the benefits of the upgraded network together.
By The Numbers: The Rate Bitcoin Must Climb To Reach $100K By July
Bitcoin is a numbers game through and through. There are only 21 million BTC. The code and its consensus algorithm are both made up of complex math. The total coins are slashed in half every four years, and so on and so fourth.
Most important of all, here’s the growth rate Bitcoin price must hit steadily to reach $100K per BTC by July 2021 according to one crypto capital manager – as well as the one thing that could get in the way.
Bitcoin Price Growth Rate Should Take Crypto Valuation To $100K By July
Bitcoin’s growth from virtually worthless to more than $60,000 per » Read more
” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin came to be reads as if it was ripped from a sci-fi film: Mysterious person takes a shot at all money, and takes no credit for the monumental effort.
” href=”https://www.newsbtc.com/dictionary/satoshi/” data-wpel-link=”internal”>Satoshi’s creation is now more than a decade old and has grown far beyond most people’s expectations. Over the last year alone, the leading cryptocurrency by market cap has grown at a daily average rate of 0.65% since April, resulting in a nearly a ten times climb in value.
At the current pace, according to crypto capital manager Timothy Peterson, Bitcoin price would reach $100K by June 30th.
At only a daily growth rate of 0.64% the top crypto should hit $100K by July | Source: BTCUSD on TradingView.com
The One Factor That Could Cause BTC To Fall Short Of Target
Bitcoin price must maintain comparable momentum over the last year to keep climbing at a similar rate and reach more than $100K per » Read more
” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin. The number is now closer to the current price action than $10K is, and thus potentially more achievable.
Price predictions for the next cycle top reach as much as $400K, with estimates more steeped in reality ranging from $125,000 to $325,000 per BTC.
The rally could really be over if the historically accurate signal is right again | Source: BTCUSD on TradingView.com
There’s a chance, however, the cycle top is in, according to the Pi Cycle Top Indicator. If the historically accurate tool is right yet again, the leading cryptocurrency’s daily growth rate will begin to decline from here on out until another bull market breaks out.
Bitcoin price wouldn’t make it to $100K by July, and a return to prices much lower would follow. If that’s the case, crypto investors would have to wait a while longer for the number one cryptocurrency by market cap to reach that ultimate target.
Featured image from Deposit Photos, Charts from TradingView.com
Bitcoin’s time has come: TIME magazine to hold BTC on balance sheet
Institutional fund manager Grayscale has partnered with acclaimed New York-based magazine TIME to produce an educational video series on the subject of crypto assets.
The partnership was announced on April by Grayscale’s CEO, Michael Sonnenshein, with Sonnenshein revealing that TIME and its president, Keith Grossman, will receive payment in Bitcoin.
Further, TIME does not intend to convert the Bitcoin it receives through the deal into fiat, and will hold the crypto asset on its balance sheet. No further details of the partnership have been revealed so far.
— Michael Sonnenshein (@Sonnenshein) April 12, 2021
TIME was first published on March 3, 1923, with the magazine and online publication having been active in the crypto space of late. In March, TIME cashed in on the NFT mania by dropping a set of tokenized magazine covers on NFT marketplace SuperRare, with the “TIME Space Exploration – January 19th, 1959” NFT fetching 135 ETH worth almost $250,000 on March 30.
“The media industry is undergoing a rapid evolution. TIME is seeking a Chief Financial Officer who can help guide its transformation,” the listing said.
According to Bitcointreasuries.com, TIME will become the 33rd publicly traded company to hold Bitcoin on its balance sheet. TIME joins the ranks of top U.S. companies Microstrategy — who have invested billions into BTC from August 2020, Square — who added 4,709 BTC to their treasury in October, and Tesla — which purchased $1.5 billion worth of BTC in January. Multinational investment corporation Blackrock also began dabbling in crypto during February, profiting more than $360,000 from a small long using Bitcoin futures.
This deal marks a significant partnership between giants of the mainstream and crypto worlds. Grayscale was founded in 2013 and has $46 billion worth of crypto assets under management, including roughly 3% of Bitcoin’s total circulating supply.
Moonstake integrates with Sylo to bring their staking protocol to the Sylo Smart Wallet
Moonstake, a staking pool protocol and service provider, has announced a new partnership with Sylo, a decentralized software development firm and the creators of the Sylo Network and Sylo Smart Wallet.
Through this collaboration, Moonstake will connect Sylo with their robust API/SDK solution, thereby enabling staking functionalities in the Sylo Smart Wallet and allowing Sylo users to earn passive income from their idle crypto assets.
Founded in 2010, Sylo is committed to decentralization and has created an ecosystem consisting of digital consumer wallet software, applications, infrastructure, and developer tools in order to usher in a decentralized future worth looking forward to.
A unique wallet app that combines digital asset management with decentralized communication, the Sylo Smart Wallet is a savvy decentralized e-wallet that enables users to purchase, store, track, send, and receive crypto assets, explore the world of Ethereum dApps by means of a Web3 Browser, pay with cryptocurrency in the real world, and provides secure communications by chat or audio/video call.
“We’re pleased to offer our community of global users yet another way to access the benefits of crypto. As always, our user flow has been designed with simplicity in mind, and staking via Moonstake in the Sylo Smart Wallet will make earning from digital assets simple enough for people everywhere.”
– Dorian Johannink, Co-Founder and Business Director of Sylo
Born over a year ago with the aim to create the largest staking network in Asia, since its inception Moonstake has developed highly user-friendly wallets for both Web and Mobile (iOS/Android) that are compatible with over 2000 cryptocurrencies.
After a full-scale operational launch in August 2020, Moonstake’s total staking assets have grown rapidly to reach USD 800 million in staked assets over just six months. Within a year of its founding, Moonstake became ranked in the top 10 of the world’s premier staking service providers and it continues to strongly expand its business.
“The Sylo Smart Wallet is an interesting e-wallet that combines the functionality of a flexible digital asset management tool and a secure instant messaging app. We are happy to help proper crypto projects like Sylo enable staking in their wallet so that users can have more ways to earn with crypto. With a wide selection of PoS coins and attractive yield rates from our high-quality staking pools, we are confident that users will be pleased with their staking experience on Sylo powered by Moonstake.”
– Mitsuru Tezuka, Founder of Moonstake