Ethereum Inflows to Coinbase Increases As Staking Return Rises

Paigambar Mohan Raj
Ethereum Cancun Upgrade Explained
Source: CNBC

According to crypto analysis firm CryptoQuant, Coinbase has witnessed an increase in Ethereum (ETH) inflow. The popular exchange recorded more than 53,400 ETH entering its platform. Of the total, 44,000 ETH was transferred from Coinbase’s cbETH deposit address ending with a019 to Coinbase 10. There is some speculation that the transfer could be due to the cancellation of ETH staking.

Ethereum staking, which enabled investors to get paid for holding and protecting the network, has long been a key component of the project. However, the most recent transfer at Coinbase has raised concerns about the long-term viability of this common practice. The potential effects of the termination of Ethereum staking are still unknown.

The prospective change in Coinbase’s business approach might have a big impact on the overall crypto market. The stability and expansion of the Ethereum ecosystem as well as investor sentiment may be impacted by a change in this strategy.

Ethereum staking returns witness record spike

Investors have placed 3.44 million ETH into ETH 2.0 contracts since unstaking was implemented on the Ethereum network. On the other hand, according to the most recent data, investors have withdrawn 2.67 million ETH, leaving a net of 770.70k ETH, or almost $1.41 billion. At press time, staking APR stood at 8.76%.

Staking tokens for Ethereum have also witnessed a surge in price. With price increases of 22.9% and 12.8%, Lido Finance (LDO) and Rocket Pool (RPL) led weekly market advances. Services like Lido Finance enable anyone to invest any amount, unlike direct mainnet deposits, which need a minimum deposit of 32 ETH.

At press time, Ethereum (ETH) was trading at $1,828, up by 1.4% in the last 24 hours. Nonetheless, the asset is down by 13.3% over the last month. Furthermore, ETH is down 62.50% from its all-time high of $4,878.26, attained in November 2021.