You no longer need 32 ETH to stake on Coinbase Cloud

Partial staking will be coming to Coinbase Wallet in “the coming weeks”

article-image

Rcc_Btn/Shutterstock modified by Blockworks

share

As of Monday, Coinbase Cloud clients can now let their customers stake however much ether they want, even if it’s far below the 32 ether threshold needed to participate and earn rewards on the network.

Coinbase’s new APIs, offered through an integration with staking-as-a-service platform Kiln, could open up staking for many more individuals. Coinbase estimates that 99% of ether wallets hold less than 32 ether. 

Still, ever since Ethereum’s “Shapella” upgrade in April, the total value of ether staked has only climbed to all time highs, according to CryptoQuant data.

Additionally, the amount of ether (ETH) staked on the network was close to flipping the amount that’s stored on centralized exchanges in mid-June. As of Aug. 28, there is 28.1 million ETH staked as opposed to 14.7 million ETH on exchanges, according to Glassnode data

Partial staking, as in the ability to lock up less than 32 ETH as an individual validator, will first be coming to Coinbase Wallet in the coming weeks, according to a press release shared with Blockworks. 

However, Coinbase isn’t the first to onboard Kiln’s staking solution. 

Ledger Live integrated with the service back in November 2022, but unlike with Coinbase’s suite of crypto products, Ledger wallet users still need to stake 32 ETH or more to participate. 

“This integration with Coinbase Cloud is unique because it allows them to enable other wallets and services, including DEXes, with the same limitless ETH staking solution that will be offered by Coinbase Wallet,” Kiln CEO and co-founder Laszlo Szabo said in a statement. 

There are, of course, other ways to stake without having 32 ETH in the bank. 

Users can do it via staking pools, where they essentially break nodes down into smaller portions split between all participants who share their resources to operate the nodes. 

This often involves liquid staking through popular providers like Lido or Rocket Pool. However, these solutions end up lessening decentralization, Blockworks founder Mike Ippolito said on a July episode of the Bell Curve podcast (Spotify/Apple).

Most centralized exchanges, including Coinbase through Coinbase Earn, also offer staking options, but this isn’t ideal if the goal is decentralization. 

Participating in staking via Coinbase Wallet would be very different from doing so through Coinbase Earn, since the wallet is self-custodial.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screen Shot 2024-05-16 at 14.53.45.png

Research

Loss-versus-rebalancing (LVR) is arguably Ethereum DeFi’s biggest problem, and thus reducing LVR is fundamental to the success of Ethereum. This report dives into the world of LVR. We uncover its importance for AMM designers, discuss the two major mechanism design categories and various projects developing solutions, and offer a higher level perspective on the importance of AMMs in general.

article-image

Yesterday saw Congress’ upper chamber side with the House on a measure aimed at overturning SAB 121

article-image

Oklahoma’s new crypto bill will go into effect in November of this year

article-image

The deposits hit a $20 million cap in just 45 minutes

article-image

Twelve Democratic Senators voted in favor to pass the resolution Thursday

article-image

Pump.fun is “aware” that bonding curve contracts on Pump.fun were exploited, and has since paused trading

article-image

Some investment pros are mulling crypto allocations between 1% and 10% and seeking ex-BTC exposure for interested clients