Coinbase has continued to follow-through on its “keep reducing the ETH2 staking value” campaign that they promised from the beginning.
Not a complaint, just a stone-cold fact! It was made very, very clear from the beginning of their staking offer that rewards would drop as more ETH was staked on the platform. With Coinbase’s Super Bowl ad and Robinhood’s (slow) rollout of actual crypto wallets, it’s likely that these new avenues have brought in plenty of new ETH holders looking to stake.
While Coinbase’s ETH2.0 staking started around 7%, as more and more ETH has been staked both on Coinbase and off Coinbase, the APR (note: it’s APR, not APY) has declined every few seasons. A previous update at the very beginning of January had nearly $34B of ETH locked up to transition to ETH2.0. An update from Coin Desk back in early March had the number at 10 million.
If you’re part of the Coinbase ETH staking, or if you’re part of another platform’s ETH staking, then you’re part of a huge movement. ETH 2.0 has made many significant promises and while the final transition date has always been fluid, it’s going to be a big change.
There’s been a ton of speculation about what an ETH2.0 transition will do the value of the coin, and the opportunity for a more efficient ETH with lower gas fees has many people excited about the next chapter of this project. For years, I’m sure many of you have witnessed the much-rumored “flippening.” With ETH proponents pitching the possibility that ETH value will overtake Bitcoin. What used to be a constant subreddit mention has become less frequent in the previous months, but any time that ETH2.0 news drops, a few more FLIPPENING posts will come back around.
Many of us rode through 2021 fueled by the constant buzz of “BTC to 100k” and ETH2.0 debuting and springing to $10k. (To a lesser extent, a bunch of noobs were pitching SHIB to $1, and let’s not forget the total disaster of the Squid Game coin.) This was everywhere: the youtubers were all on board, the crypto website writers were pumping up the hype, and then…well..here we are. ETH2.0 remains a distant promise, BTC tumbled into the 30k range.
SIDE NOTE: can you imagine going back five years and telling your old self: hey, Bitcoin fell to 30k and people are upset? In those early days, a headline like that was just a big dream.
The constant battle cries of DCA, HODL, and BULLISH haven’t gone away, but we have seen a pretty interesting crab market for the past few weeks. BTC and ETH whales have done their thing, as always, and maybe it’s just me, but I’ve seen fewer sub posts about Axie Infinity and their ETH economy. (ETHconomy????)
Redditors have made all kinds of moves with various crypto exchanges, cold wallets, and staking pools.
For those of you continuing to stake via Coinbase, I salute you. For those of you DCAing the way you’ve always done, I salute you.
Let’s go, ETH2.0!
And you can’t pull it out?
This is not news…as more people stake, the rates will drop (doesn’t matter if it’s on CB or any other place)…it may increase again after 2.0 is live.
This is not unique to Coinbase. This is an ETH staking design. All exchanges pay out lower because ETH is paying lower with more validators online.
No one should be shocked by this because this has been published to death as something that was going to happen pre merge.
As expected, rates will only continue to decrease. It’s not like banks always had shitty rates either, and unfortunately with more adoption a lot of coins will also have poor rates too, eventually
If this is surprising to you now you’re going go be in for a massive shock in a few years when everything is “only” a few %
Everyone knows that a PY will fall over time, just enjoy the digits while you can get them
wow that is a news
Then eventually, coinbase will offer just as much as the banks. That’s the goal!!!
I thought you get locked in. Kind of annoying but whatever. We are coming to the end of the merge
So not only Crypto.com drops theirs apys in different projects but also Coinbase? What’s wrong with this exchanges?
The good old “offer high gains” trick. Lol but but I thought banks were bad. The banks are saying thanks to you guys for helping them make profit before the big showdown goes down.
It was good while it lasted, still much much better than interest the banks give tho