An annual percentage yield (APY) of 6 percent is now being offered for Ethereum staking by Binance US, a US-based division of the largest cryptocurrency exchange in the world. This rate is significantly higher than that of significant rivals Lido and Coinbase, which offer 3.5 percent and 3.25 percent APY, respectively.
Users will be able to stake ETH through the platform for a competitively low minimum of 0.001 ETH, according to a statement from Binance US.
A user must invest a minimum of 32 ETH in staking ETH directly through the Ethereum network.
“We are excited to now provide ETH staking with some of the highest APY incentives in the market as the Ethereum network continues to evolve towards The Merge,” Binance US CEO Brian Shroder said in a press release.
According to StakingRewards data, there are now 54,800 more people staking ETH than there were a month ago. Although it peaked on August 13 at $1.68 billion (approximately Rs. 13,400 crores), the average ETH staking revenue dropped to $937 million (about Rs. 7,500 crores) as of the writing. The price of ETH, which had fallen from above $2,000 (approximately Rs. 1,60,000) in mid-August, was a significant factor in the fall.
The long-awaited Ethereum update known as “The Merge” will bring together the network’s execution layer, current Ethereum main net, consensus layer, or beacon chain. The Merge will finish Ethereum’s switch to a proof-of-stake consensus algorithm from a proof-of-work one.
The Merge is presently anticipated to occur between September 13 and September 15. After that point, Ethereum users can stake their ETH to support network security while generating passive ETH payouts.
Upon successfully completing the Merge upgrade, users will be permitted to withdraw their staked ETH from the Ethereum network. This update is known as the “Shanghai Upgrade.”
However, there is no assurance of a successful transition due to the complexity of the planned Merge update. Users’ funds are vulnerable to risks such as a prolonged return on the invested money or loss of the funds in the event the upgrade fails.