Crypto.com, one of the most popular crypto exchanges in the world, has launched its on-chain staking initiative. According to an official announcement, only Ethereum (ETH), Solana (SOL), and Polkadot (DOT) staking will be available upon launch. However, more protocols will be added in the future.
The announcement also noted that the staking feature will only be available in “select markets.” Unfortunately, the official release does not state which markets the new staking initiative will be available in. The feature is not available to citizens or residents of the U.S. and its territories, Australia, Canada, Hong Kong SAR, South Korea, Singapore, Thailand, and Malta.
The minimum staking amount for all three protocols is currently set at 1.00E-08. Moreover, there is no minimum staking period for all three projects. However, the frequency of rewards is different for each asset. Ethereum (ETH) stakers will receive rewards every 7 days, Solana (SOL) stakers every 2.5 days, and Polkadot (DOT) stakers will receive them every day.
Staking allows investors to participate in securing the network while receiving rewards for doing so. Typically, stakers join staking pools managed by validators, who aid in transaction verification and adding them to the network. In exchange, they are rewarded with freshly minted tokens. After deducting their costs, validators can proportionally distribute the rewards to stakeholders.
Ethereum, Solana, and Polkadot staking on the rise
The Ethereum (ETH) network has seen a significant rise in staking after the Shapella upgrade. According to crypto analysis firm Glassnode, the total ETH locked in staking has surpassed 26 million. On the other hand, ETH’s circulating supply has consequently declined.
The Shapella upgrade allowed stakers to unstake their tokens, which has boosted investor confidence.
Solana (SOL) on the other hand, had seen a massive plummet in TVL (total value locked) since June 2022. However, the trend is slowly changing in 2023. According to DefiLlama, locked SOL has seen an upward movement since the beginning of this year.
Polkadot (DOT), according to Messari, has about 45.7% of its supply currently staked, which amounts to about 607.20 million tokens, in Q2 2023. This is a decline from the 50% which was staked in Q1 2023. According to Messari, the lower percentage results in higher stake rewards, which promotes greater stake involvement. Moreover, the analysis firm noted that Polkadot has consistently kept its staking percentage towards its desired level.