On Wednesday (24), publicly traded cryptocurrency exchange Coinbase announced a staking service for cryptocurrency Cardano (ADA).
As Rupmalini Sahu, Senior Product Manager of the platform, highlighted in a statement, Cardano is one of the ten most valuable cryptocurrencies by market cap. Currently, the ADA market cap exceeds $36.72 billion
Also according to Sahu, Cardano is a Proof of Stake (PoS) blockchain designed to be an evolution of ETH. Furthermore, it aims to enable smart contracts to allow developers to build DeFi apps, tokens, games, etc.
“When users stake their cryptocurrencies, they make the underlying blockchain of that asset more secure and efficient. And in return, they are rewarded with additional network assets, which are paid out as rewards,” Sahu pointed out.
A day after the launch, the ADA price reacted positively. In the last 24 hours, the seventh largest cryptocurrency by market cap has gained nearly 18%. During the bullish move, ADA managed to overcome strong resistance around $1. At the time of writing, the altcoin is trading at $1.15.
However, despite the momentary rise, the price of the digital currency is still more than 62% below its all-time high reached in September 2021. On the 2nd of that month, the altcoin traded at $3.09.
ADA Staking on Coinbase
As per the Coinbase publication, the estimated annual return for staking Cardano is around 3.75% APY.
Rewards will begin to be paid out once the initial retention period is complete, 20-25 days. After that, the rewards will be deposited into users’ accounts every five to seven days.
“You will always maintain control. Your Cardano is always in your account. You only earn rewards while keeping your cryptocurrencies safe on Coinbase. You can choose to leave whenever you want,” the exchange points out.
To start staking, simply buy Cardano on Coinbase or deposit Cardano from an external wallet into your account on the platform. After that, just keep the cryptocurrencies and start earning the rewards.
Also according to Coinbase, to staking ADA it is not necessary to be an expert cryptocurrency trader.
“Offering simple ways for our customers to earn cryptocurrencies through staking is an important step in building an open financial system.”
Check here for more details on staking Cardano from Coinbase.