Tezos News Today – staking on the Tezos network is thriving despite the high service fees. Even though the fees are as high as 30%, this isn’t uncommon among staking providers. This content provides a way to make more funds from Tezos staking. The amount of growth that staking has provided is largely due to centralized providers like Coinbase.
Staking Tezos on centralized exchanges has increased significantly since last month, having increased by 27% since January 2020. Coinbase has 8% of Tezos’ stake, making it the biggest Tezos staking provider despite the 25% fees.
Tezos Staking Reached an All-Time High
Staking has seen its popularity rise since last year as more cryptos abandoned the proof-of-work for the proof-of-stake model. Projects like TRON, EOS, and Tezos are taking over the staking market. Custodial staking of Tezos on centralized exchanges has increased since 2019 and into 2020, according to the Blockwatch Data analytics company. Blockwatch’s Founder Alexander Eichhorn said 127 million XTZ was held by custodians as at February end. He describes this number, as 19% of the entire staked Tezos tokens and even 15% of the overall supply of XTZ. It is a 27% rise from January this when less than 31 million coins were reportedly staked.
Meanwhile, network-wide staking has risen by 3% since last month. This figure has reached an all-time high point of 79%. Only 3 million new XTZ tokens were minted last month according to Eichhorn.
No One Cares About the High Fees
While staking has become popular as expected because it provides users a way to earn some money from their crypto holdings, centralized custodians were certainly not expected to be popular. Eichhorn’s take on this growth rate was that it was an impressive situation. Coinbase, U.S largest crypto exchange, is now the biggest Tezos staking provider in the last 4 months with 8% of the network.
With 27%, Tezos Foundation has become the only entity to manages more stakes on Coinbase. Kraken manages just a 4% stake in XTZ’s network. Anyone interested in staking XTZ should use MyTezosBaker to look for and compare the different delegation services offered by these entities. MyTezosBaker, says Coinbase isn’t the costliest delegation service. They say KuCoin charges high fees of at least 50%. While Validators.com charges a whopping 30% and Gate.io offers Tezos staking services at 28%.
JF Hotte, founder of XTZ’s delegating service TezosTacos, reports that the number of users staking Tezos on high service rates are high on Coinbase. Hotte claims that these numbers show that most stakers’ don’t understand how services like this work.
