Cryptocurrency News

Kraken Customers Are Staking More Than $1 Billion in Cryptocurrency

By January 8, 2021 No Comments

Key highlights :

  • Users on the Kraken platform have staked more than $1 billion worth of crypto on the exchange
  • Cryptocurrency holders are confident about their long-term prospects
  • Proof-of-Stake cryptocurrencies are popular among users

According to an announcement by the Kraken cryptocurrency exchange on Wednesday, customers have staked over $1 billion worth of cryptocurrency via its platform. A spokesperson from the exchange revealed that Ethereum represents around one-third of the staked assets. Tezos and Polkadot are among the other significant cryptocurrencies popular among Kraken customers who are using the exchange’s staking services. Kraken also supports other coins for staking, including Kava and Cosmos.

Note: How to buy Bitcoin on Kraken

The popularity of staking in the crypto space confirms the long-term outlook by cryptocurrency investors. Holders are currently very confident about the long-term prospects of crypto assets, and don’t mind staking their assets for an extended period of time to earn additional staking rewards. Staking is becoming popular among crypto users, and many users are attracted to it as a passive source of income.

Past investors were focused on short term profits

Investors in the past were mainly focused on short term profits. But now, they are sure that crypto is coming to stay. They believe in the stability and survival of the ecosystem right now, and their prospects are more long term than before. 

Staking occurs on a PoS blockchain, and users temporarily lock up their coins to help secure the network. In exchange for this service, stakers are periodically given staking rewards. Many people use exchanges for staking because it’s much more convenient than staking through wallets. 

Kraken introduced support for Ethereum 2 staking on December 3. The exchange notified the users about staking Ethereum and stated that the staking is not a short-term process. Those who are staking on Ethereum 2.0 right now will not be able to withdraw their coins until Phase 1.5 of the Ethereum 2.0 transition process is reached.