Kraken’s New Staking Service Locked $60 Million Worth of ETH

December 9, 2020 3:43 PM UTC

 

Kraken, a San Francisco based cryptocurrency exchange, has seen an abrupt surge in its ETH deposits, just less than a week after it started Ethereum 2.0 staking service. The total number of ETH staked on the exchange hit the 100,000 threshold, worth over $60 million.

Ethereum 2.0, also dubbed as “Serenity” or Eth2, is an essential upgrade to the network. It intends to direct the network’s security by bringing modifications to its infrastructure—most prominently, the shift to a proof of stake (PoS) model from a proof of work (PoW) consensus mechanism. Moreover, the upgrade also aims to improve the Ethereum network efficiency and scalability so that it can process more transactions with ease.

Jeremy Welch, vice president of Kraken, said that the giant crypto exchange has “long been a supporter of Ethereum,” adding that Kraken first listed Ethereum (ETH) in 2015. The recent milestone was achieved on December 8. Based on the exchange estimates, its staking service amounted to nearly 8% of all ETH staked for Ethereum 2.0 up to this point.

Major Players Launching the Staking Service

MyEtherWallet, one of the most famous Ethereum’s wallet, has also announced an integration with node-hosting service Staked in order to allow users to access Ethereum 2.0 staking. Users can stake ETH through the firm’s browser or mobile wallet.

Staked’s chief executive, Tim Ogilvie, stated:

“MEW is rightly regarded as one of the original Ethereum wallets, and it is only fitting that MEW users can now take advantage of our staking infrastructure to participate in Ethereum’s major upgrade.”

Over the past week, the major cryptocurrency exchanges, including Binance, Huobi, and Bitcoin Suisse, have been introducing their services, not leaving Kraken alone in offering Eth2 staking service. OKEx is also looking to launch its staking service at the end of this month. Whereas, Coinbase plans to join the race in “early 2021.”

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