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Tag: staking

  • Ethereum Wallet Count Surges Past 175.5M as Staking Drains Exchange Supply

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    Ethereum wallet growth surged past 175.5 million as staking remains attractive even during market uncertainty.

    Ethereum (ETH) slid to nearly $2,800 over the weekend as rising geopolitical tensions pressured risk assets. The pullback, however, was followed by a modest rebound, which lifted the crypto asset back above $3,000 by Wednesday.

    Despite this volatility, the network keeps growing, with record wallet numbers and a shrinking exchange-held supply.

    Exchange ETH Supply Shrinks

    Ethereum’s number of non-empty wallets has surpassed 175.5 million, which, according to the latest findings by Santiment, is the highest among all cryptocurrencies. In fact, 5.16 million wallets were recorded in 2026 alone. The data indicates steady user participation, even amid sideways market conditions.

    The analytics firm added that continued interest in staking is contributing to a steady decline in ETH held on centralized exchanges. Such trends can reduce selling pressure and support prices over time, even if short-term movements remain muted.

    Against this backdrop, the network’s fundamentals suggest strong underlying support. Glassnode analyst Chris Beamish found that Ethereum is currently trading around a dense cost basis cluster. This means that many holders are near their breakeven levels. He explained that holding this zone would indicate absorption and base-building, while a breakdown could push ETH into weaker support areas where holders may look to reduce exposure.

    Largest Corporate ETH Holder Staking Millions

    On the corporate treasury side of things, BitMine Immersion Technologies, which happens to be the largest corporate holder of ETH, expanded its Ethereum treasury by 40,302 ETH on Monday, worth about $117 million. Its total holdings are now more than 4.24 million ETH, and account for 3.52% of all ETH in circulation.

    The firm also revealed staking over 2 million ETH, almost half of its Ethereum holdings, and turning a significant share of its treasury into yield-earning assets. BitMine’s fast staking pace has added pressure to the Ethereum network, pushing the waiting period to become a new validator to 54 days as the popularity of staking on the blockchain grows.

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    Corporate interest in Ethereum, in general, has been on an uptrend. Bitwise observed that companies purchased over 1 million ETH, which is valued at approximately $3.5 billion. The number of publicly disclosed firms holding ETH rose by 40%, and together, these corporate holdings now account for roughly 5% of all Ethereum in circulation.

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  • IRS Introduces Safe Harbor Allowing Tax-Free Staking for Crypto ETPs

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    Revenue Procedure 2025-31 lets ETPs distribute staking rewards directly to investors without triggering extra taxes.

    The U.S. Treasury and the IRS have announced a new safe harbor that allows crypto exchange-traded funds (ETFs) to stake digital assets without paying extra tax.

    The guidance resolves a regulatory challenge that previously prevented asset managers from participating in staking networks due to concerns about potentially violating tax laws.

    Safe Harbor Guidance

    Under Revenue Procedure 2025-31, ETFs and trusts are now allowed to stake digital assets and share the rewards directly with investors. Treasury Secretary Scott Bessent stated on November 10 that the move is intended to enhance investor benefits, promote innovation, and maintain America’s position as a global leader in digital asset and blockchain technology.

    Under the previous framework, tax law prohibited a trust from controlling its investments or operating a business for profit. This created a challenge because actively managing staking could lead the IRS to classify the product as a corporation. If that happened, the trust’s rewards would be subject to corporate taxes, making the activity unprofitable for investors.

    The revised policy creates a safe harbor where staking rewards earned within an ETP framework do not automatically create immediate tax liabilities for individual investors. Consensys lawyer Bill Hughes explained the update, stating, “[The guidance] transforms staking from a compliance risk into a tax-recognized, institutionally viable activity.”

    To take advantage of the protection, an ETF must follow strict rules. The investment products must operate on a national securities exchange and have all activities and disclosures approved by the SEC. The trust can hold only cash and one type of proof-of-stake digital asset, and management is limited to essential tasks, such as accepting assets, paying expenses, and distributing rewards.

    Earning profits from market fluctuations is also not allowed, and a third-party custodian must hold the private keys and work with an independent staking provider.

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    New Rules Accelerate a Growing Trend

    This new tax clarity arrives as asset managers are already expanding their offerings. The regulatory path for such products was partly cleared in August when the SEC’s Division of Corporation Finance issued a bulletin stating that certain liquid staking activities do not fall under securities laws.

    Many experts saw the determination as the last major obstacle for the SEC to approve staking in spot Ethereum ETFs. It set the stage for new products, including the first Solana staking ETF, which launched in the United States back in July.

    BMNR Bullz, a well-known X account, described the development as a major victory for ETH and crypto ETFs, suggesting it could open the door to trillions of dollars in institutional capital and accelerate mainstream digital asset adoption.

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  • Zircuit’s TVL Surpasses $2 Billion Ahead of Summer Mainnet Launch

    Zircuit’s TVL Surpasses $2 Billion Ahead of Summer Mainnet Launch

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    Zircuit, an EVM-compatible ZK Rollup, has reached a milestone as its staking Total Value Locked (TVL) has surpassed $2 billion. This comes after users deposited more than $80 million into the project in the last 24 hours.

    Although still in the testnet phase, the mainnet launch is anticipated later this summer.

    Zircuit Staking Deposits Surpass 500,000 ETH

    Zircuit announced its staking program on February 24. It allows users to participate in the project’s ecosystem and gain Zircuit points by staking various assets, including ETH and several staking derivatives such as ezETH from Renzo Protocol, rswETH from Swell Network, rsETH from Kelp DAO, LsEtH from Liquid Collective, and stETH from Lido Finance.

    According to Dune Analytics, 544,716 ETH, liquid staking tokens (LSTs), and liquid restaking tokens (LRTs) have been deposited into the project. Furthermore, the network holds more than $186.4 million of stablecoins, primarily Ethena’s yield-bearing USDe token.

    The Zircuit points, in addition to the yield and points generated by the deposited assets, are anticipated to qualify holders for a future airdrop. Upon the mainnet launch, those who migrate their assets to the Zircuit Mainnet will receive the highest rewards. Meanwhile, users can withdraw their assets at any time while retaining the points and yield earned, as ETH is not hard-locked like other protocols such as Mantle.

    Furthermore, the project introduced its “Build to Earn” program on March 27, incentivizing developers to construct infrastructure and tools or deploy decentralized applications (dApps) on Zircuit’s testnet, launched in November.

    Zircuit’s Pre-Mainnet Traction Mirrors Blast’s Rise

    Meanwhile, Zircuit surpassed the $500M TVL mark on March 8, highlighting its increasing adoption over time. Notably, its traction before the mainnet launch resembles Blast’s rapid rise last year.

    Blast, developed by the team behind Blur, a prominent NFT marketplace, quickly became the third-largest layer 2 platform, boasting a total value locked (TVL) of over $2 billion upon its mainnet launch on Feb. 29.

    The project was the first high-profile layer 2 to attract huge deposits even before the release of any code by enticing users with the promise of points and native rewards from supported yield-bearing assets. Blast introduced a one-way deposit contract in mid-November, accumulating over $500 million worth of assets in less than one week.

    However, unlike Blast, Zircuit allows users to withdraw pre-mainnet deposits anytime, providing increased flexibility and liquidity.

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  • Grayscale Launches New Institutional Crypto Fund With Staking Rewards

    Grayscale Launches New Institutional Crypto Fund With Staking Rewards

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    On March 29, the firm announced its Grayscale Dynamic Income Fund (GDIF) stating that it is its first actively managed investment product.

    Grayscale added that the new fund aims to optimize income in the form of staking rewards associated with proof-of-stake crypto assets.

    It is the latest effort from the world’s largest crypto asset manager to retain clients and capital following a huge exodus from its flagship product (GBTC) and its conversion to a spot Bitcoin ETF.

    Grayscale Goes Into Staking

    “Using qualitative and quantitative factors, we invest capital across a portfolio of proof-of-stake tokens,” it stated.

    The fund will monetize token rewards into cash on a weekly basis, distribute the earnings to investors quarterly, and rebalance tokens to optimize income.

    The disclosed holdings of the fund were very vague. It will be comprised of 24% of the decentralized Cosmos exchange Osmosis token, OSMO. An additional 20% will be held in Solana (SOL), and 14% will be in Polkadot (DOT).

    The remaining 43% was mysteriously labeled as “other,” and there was no mention of the world’s largest proof-of-stake token, Ethereum. The Portfolio Manager for GDIF is Matt Maximo, who has been with Grayscale Investments since 2021.

    Additionally, the new fund is only available to high-net-worth individuals with assets under management of more than $1.1 million or a net worth of more than $2.2 million, and it has a 10% performance fee.

    Grayscale’s industry-leading Grayscale Bitcoin Trust (GBTC) has been hemorrhaging capital since it converted to a spot ETF in January. The fund, which once held a whopping 620,000 BTC, has shrunk by 46%, having lost 284,846 BTC worth $20 billion over the past eleven weeks.

    This week alone, GBTC has shed $967 million worth of BTC. However, competing products from BlackRock and Fidelity have scooped up more, reversing a trend of outflows for Bitcoin ETFs.

    Staking Outlook

    The global staking market capitalization is around $355 billion, according to Staking Rewards.

    It lists ETH as the leading staking asset, with $110 billion worth staked. Solana is the second-largest with $72 billion staked, followed by SUI, Aptos, and Cardano, which have around $15 billion worth staked each.

    The average reward rate is 6%, it reported, though many of the higher-cap coins, such as ETH, SUI, ADA, and BNB, are lower than that.

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  • Ethereum Restaking Narrative Grows as EigenLayer TVL Surges

    Ethereum Restaking Narrative Grows as EigenLayer TVL Surges

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    The total value locked on Ethereum restaking protocol EigenLayer has surged 70% over the past week. Furthermore, it is currently at an all-time high of $3.4 billion, according to DeFiLlama.

    The reason for the surge is a reopening of deposits on the restaking platform and the removal of staking limits or caps.

    On Feb. 6, the protocol stated, “All pools are fully uncapped, featuring both the existing pools,” and welcomed new partners Frax Finance, Liquid Collective, and Mantle.

    🟦 EigenLayer Restaking Reloaded! 🟦

    From NOW until Feb 9th, 12 PM PT, dive back into the world of LST restaking! All pools are fully uncapped, featuring both the existing pools and welcoming new partners @fraxfinance, @liquid_col, & @0xMantle. pic.twitter.com/yDGHiJjX3m

    — EigenLayer (@eigenlayer) February 5, 2024

    Ethereum Restaking Surges

    The EigenLayer team said the “unpause marks the temporary removal of TVL caps, paving the way for a future where pauses and caps are lifted permanently.”

    “This puts the EigenLayer protocol at a critical juncture, seeking to balance neutrality with decentralization over the long-term.”

    Essentially, restaking allows users to stake the same ETH on both Ethereum and other protocols. By leveraging Ethereum’s validators and staked tokens, smaller and newer blockchains can benefit from its robust security and trust system, reducing the risks of attacks or failures.

    However, the EigenLayer protocol faces a tradeoff between neutrality, allowing free market behavior, and decentralization – preventing dominance by a single token.

    The protocol temporarily lifted token restaking caps to be more neutral. However, a fully neutral protocol risks a single token dominating governance and incentives.

    To balance neutrality and decentralization, EigenLayer proposed three rules on Feb. 5. These were no caps on staked token value, no caps on payments from apps to stakers, and a cap on EigenLayer protocol incentives and governance at 33% for any token or participant.

    “This proposal is designed to navigate the delicate balance between neutrality and decentralization. However, the ultimate decision to discuss, refine, and implement these suggestions rests with the EigenLayer protocol community.”

    It added that the cap raise signifies a major event “as it marks the first instance of eliminating the TVL caps for each token for a fixed period.”

    Low Initial Returns

    DeFi researcher Thor Hartvigsen offered his take now that EigenLayer has reopened deposits with support for mETH, sfrxETH, and lsETH.

    He noted that returns were not that great, but there were other potential upsides. EigenLayer is still attractive for ETH parking despite low initial earnings due to the potential for increased earnings and airdrops, he said.

    In summary, Ethereum restaking is set to be one of the big crypto narratives of 2024.

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  • Hong Kong regulators wary of unauthorized crypto staking

    Hong Kong regulators wary of unauthorized crypto staking

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    Hong Kong’s Securities and Futures Commission (SFC) has issued a cautionary statement, alerting the public to be wary of high-yield crypto investment schemes including the “Floki Staking Program” and “TokenFi Staking Program.” 

    SFC warn investors 

    According to a recent announcement, the Hong Kong Securities and Futures Commission (SFC) has made it clear that both the “Floki Staking Program” and “TokenFi Staking Program” lack authorization for offering to the Hong Kong public. 

    The regulator says both offerings involve cryptocurrency staking services that claim to deliver notably high annualized returns, ranging from 30% to over 100%, therefore, investors must exercise caution and diligence in light of these potentially suspicious schemes.

    Additionally, the administrator overseeing these products has been unable to satisfy the SFC regarding the feasibility of achieving the high annualized return targets.

    Highlighting the accessibility of information about these products to the Hong Kong public through the Internet, the SFC took proactive measures. On Jan. 26, the commission added both products and their related details to the SFC’s Suspicious Investment Products Alert List.

    Expressing concern, the SFC cautioned investors about “staking” arrangements associated with virtual assets, noting their potential classification as unauthorized collective investment schemes and the inherent high risk. 

    The regulator says these investment products carry elevated risks, and as such, investors may find themselves with limited or no protection under the Securities and Futures Ordinance (SFO), exposing them to the risk of losing their entire investments. 

    The SFC advised investors to exercise caution, especially when encountering investment products that promise returns that seem “too-good-to-be-true,” urging vigilance in making investment decisions.

    It will be recalled that in a statement released on Dec. 13, 2022, the SFC reiterated its caution to investors regarding the risks associated with virtual asset investment schemes, specifically highlighting “staking” services. 

    The SFC emphasized that such arrangements could potentially be categorized as Collective Investment Schemes (CIS), directing this reminder to both investors and individuals participating in these virtual asset arrangements.

    In line with its commitment to regulatory oversight, the SFC asserted its readiness to take appropriate actions in the event of any breaches of the law.

    Floki responds  

    In a live spaces recap on X (formerly Twitter), the Floki team responded to the developments involving the SFC. The crypto platform stressed that the SFC’s primary concern revolves around the remarkable performance of the staking programs.

    Unable to divulge details regarding their discussions with the SFC, Floki clarified that they partnered with a marketing agency to launch promotions for the Floki Staking Program and TokenFi Staking Program. The agency secured media exposure, and the Floki team was under the impression that they had received approval.

    The Floki team refrained from commenting on the continuation of the marketing campaign in Hong Kong for the time being. They have reassured investors of their commitment to navigating all appropriate channels to meet the requirements set by Hong Kong authorities.

    Furthermore, the SFC reiterated its commitment to enforcing regulatory standards and safeguarding investors from fraudulent schemes. 

    Hong Kong legislator supports spot Bitcoin ETF adoption

    In related news, Hong Kong lawmaker Johnny Ng has called on the government to promptly introduce spot Bitcoin (BTC) exchange-traded funds (ETFs).

    The decision comes on the heels of the recent approval of similar products in the U.S.

    Anticipated to debut by mid-2024, Hong Kong’s first spot crypto ETFs have been under review by the SFC and the Monetary Authority.

    The move is viewed as a significant stride towards aligning with global financial trends and solidifying Hong Kong’s standing in the crypto industry. The swift adoption of spot Bitcoin ETFs in Hong Kong could also have a profound impact on the region, as highlighted by industry insiders and experts.

    The introduction of ETFs is deemed pivotal in aligning regulatory and industry expectations on controls and compliance, paving the way for this reality in the Asian market, where Hong Kong aspires to be a testing ground for the broader region.


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  • MetaMask Launches Staking Nodes on Behalf of Users, Albeit at a Steep Price

    MetaMask Launches Staking Nodes on Behalf of Users, Albeit at a Steep Price

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    Metamask launched Validator Staking support on its wallets as of January 18.

    Users who wish to stake their tokens will need to have at least 32 ETH in their wallets to do so, which is the minimum requirement of the Ethereum network itself.

    Easy to Use

    The users’ tokens will then be staked by Consensys, who, admittedly, have a stellar reputation when it comes to uptime.

    When a validator breaches consensus rules, it is slashed from the network and loses some of the funds set as collateral. With over $2 billion worth of ETH staked across tens of thousands of nodes, Consensys reportedly has never had any of its validators slashed.

    MetaMask wallet owners only need to check the boxes, and they’re on track to own staking rewards. So what are the downsides? The price, for starters.

    The Price of Not Being Tech Savvy

    Although the minimum staking requirement of 32 ETH is not something imposed by MetaMask, the barrier to entry is still quite high because of it. In order to allow more people to participate, Lido, one of the biggest staking networks, allows you to pool your Ether with others – although the rewards for doing so are, understandably, proportional to the amount you staked, leading to lower rewards.

    “With Lido, you don’t need 32 ETH to start staking. Lido will pool your ETH with funds provided by other users until the pool reaches 32 ETH. Lido will then set up a validator node by depositing the ETH into Ethereum’s staking contract and proportionally share staking rewards with you.”

    Although MetaMask also allows for pooled staking, validator nodes are still off-limits without the standard amount of collateral.

    In exchange for its services, MetaMask charges a 10% commission on rewards, currently worth about 4% of the staked amount over the course of the year. This brings a potential payout of not much more than what Lido would offer.

    Another user-friendly staking option is offered by Coinbase, who unfortunately charge a commission of 25%.

    Although MetaMask’s product is straightforward, easy to use, and helpful for newcomers to the ecosystem, someone serious about staking would probably be better off purchasing their own hardware, learning about the practice, and setting up their very own validator node.

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  • Celestia Network: How To Stake TIA And Position For 5-Figure Airdrops

    Celestia Network: How To Stake TIA And Position For 5-Figure Airdrops

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    Celestia is the star of the modular network in late 2023 after its airdrop and staking TIA has become a good way to receive airdrops. Celestia is a chain that a lot of people overlooked because, before the launch, there was not a lot of information about Celestia and the airdrop. However, in the fast-paced world of cryptocurrency, overlooked gems can often surprise the market, and Celestia Network is no exception. 

    Celestia (TIA) Airdrop And What People Missed

    Celestia network had stayed out of the limelight until it announced an airdrop eligibility site. Lots of people didn’t bother checking if they were eligible for an airdrop, because they felt it was irrelevant, people didn’t claim their airdrop at the deadline as requested by the team, which made the team extend the date to give more people the chance to claim. 

    At the end of the claim period, there were a lot of unclaimed airdrops to the extent the team had to distribute all the unclaimed airdrops to the wallets that claimed their airdrops, meaning that eligible wallets got double their initial allocations. 

    After the airdrop, the team focused on developing and creating utility for their chain, making the price of TIA skyrocket, as the demand for the chain and its token started to grow. 

    TIA Utility: Data Availability and Scalability

    Celestia gives great utility towards Data Availability and Scalability giving other chains or upcoming chains a foundation to learn and work on. The Celestia team’s innovative approach, combined with partnerships and a focus on utility, set it apart in a crowded space. 

    In this guide, we will delve into the dynamics of Celestia, explore its transformative airdrop strategy, and discuss how staking TIA can position you for not only handsome rewards but also exclusive airdrops. 

    Unlike many projects that fizzle out post-airdrop, Celestia took a different path. The team continued developing the platform, adding significant utility to the Celestia chain. This utility, focused on data availability and scalability, spurred demand for the native token, TIA, ultimately driving its price higher.

    Celestia (TIA) Network Collaborations

    Celestia has partnered with most roll-ups of other chains like the Manta network which is another rollup that has been able to combine utility from the calamari network, and the EVM network. Collaborating with Celestia for better scalability and data availability increased the demand for Celestia(TIA). 

    Celestia (TIA) Network Airdrop Distribution

    Celestia changed the way they distributed their TIA airdrop, which was different from what the market was used to. The Celestia pre-launch had incentivized node running events, rewarding node runners, but that was not enough to bring more people into exploring its ecosystem, it had to distribute its airdrop by rewarding all EVM users. If you had interacted on the EVM chain, you were eligible for the TIA airdrop. 

    Now, let’s delve deeper into the details surrounding TIA staking, Celestia’s impact on the crypto space, and the broader implications for investors seeking to navigate this dynamic landscape.

    Reasons To Stake TIA

    Staking TIA offers a multifaceted investment strategy, combining an attractive Annual Percentage Rate (APR), potential airdrop eligibility, and the broader positive trajectory of the Celestia platform. Taking a closer look at TIA staking, investors are drawn by the appealing APR, often exceeding 10%. 

    However, it’s essential to note that the choice of validator plays a crucial role in determining the staking rewards. As the Celestia platform continues to innovate and gain prominence, the allure of TIA staking is further heightened.

    Celestia’s commitment to enhancing scalability and data availability. This, in turn, has led to increased demand for TIA, solidifying its position as a valuable asset within the crypto market.

    Celestia’s unique utility and game-changing capabilities have positioned it as a frontrunner in the blockchain space. As a result, any new chain looking to launch and conduct a successful airdrop finds integrating TIA stakers as an effective strategy to garner attention. This is particularly true for projects building on the Celestia platform, where TIA’s association adds a layer of credibility and visibility

    The association of TIA with projects like Dymension, where TIA stakers met airdrop eligibility criteria, underscores the growing trend of projects leveraging TIA stakers for increased visibility and credibility. As more projects within the Celestia chain ecosystem emerge, the potential for additional airdrops targeted at TIA stakers becomes increasingly promising.

    While this analysis sheds light on the potential benefits of staking TIA, it’s crucial to acknowledge the ever-changing nature of the crypto market. Therefore, individuals considering TIA staking should conduct thorough research and stay updated on market trends to make informed decisions. 

    Exchanges to Buy Celestia (TIA)

    To embark on the journey of acquiring TIA, one can explore various prominent exchanges where TIA is listed. Platforms such as Binance, Kucoin, OKX, and Bybit offer a convenient gateway for purchasing TIA. 

    A critical component of the staking process is securing a Keplr wallet. The Keplr wallet is an essential tool for managing and staking TIA securely. Users can download the wallet, create a new wallet by saving the seed phrase, and take precautions to safeguard their keys. The importance of protecting access to one’s crypto assets cannot be overstated, as the security of the Keplr wallet directly correlates with the safety of the stored TIA holdings.

    How to Get Your TIA Wallet Address

    Go to your Keplr wallet and get your TIA address. You can get it by typing TIA in the search bar, but if it’s not available, you have to make it available.

    Click on the hamburger sign at the top left corner:

    TIA

    Click on Manage Chain Visibility next, type TIA, enable it, and Save it:

    Celestia 2

    Go to your wallet dashboard and copy your TIA address, remember, the address is supposed to start with “Celestia”. Go to your crypto exchange and send TIA to that address. 

    The process of obtaining TIA is straightforward, with the cryptocurrency available across major exchanges. Additionally, users can explore the option of bridging from other Cosmos chains, such as converting ATOM on the Cosmos chain or INJ on the Injective chain to TIA.TIA 2

    Once TIA is secured in the Keplr wallet, staking becomes the next logical step. Users can access the Celestia Staking dashboard on Keplr, choose a validator based on their preferences, and stake their TIA accordingly. Choosing a validator that offers a high percentage of rewards is best.

    It’s important to note that unstaking TIA involves a 21-day processing period, requiring users to plan their actions accordingly. 

    Protect Your Staked TIA

    Securing a Keplr wallet is paramount for those looking to engage in TIA staking. The wallet serves as a secure tool for managing and staking TIA, requiring users to download it, create a new wallet with a saved seed phrase, and take necessary precautions to safeguard their private keys. 

    Never store your seed phrase in a place where it can be accessed on the internet. Do not copy your seed phrase on your device. It is best to write down your seed phrase on a piece of paper and keep it in a place only you can access.

    CONCLUSION

    It’s crucial to emphasize that the information provided here is not financial advice, but rather an analysis of the current trends in the crypto market. However, the logic behind acquiring TIA and staking is compelling. 

    The demand for TIA has been on a consistent uptrend, driving its value from an initial $2.2 to well over $10. The combination of robust staking rewards and the prospect of participating in airdrops makes TIA an enticing asset for investors looking to maximize their returns.

    TIA price chart from Tradingview.com (Celestia Network how to stake) 

    TIA price crosses $13 | Source: TIAUSD on Tradingview.com

    Featured image from BSC News, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Scott Matherson

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  • Elastos eyes $700b Bitcoin staking market with Layer 2 network

    Elastos eyes $700b Bitcoin staking market with Layer 2 network

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    Elastos announced the launch of BeL2, a Layer 2 network built on Bitcoin, to introduce sophisticated BTC transactions on its blockchain.

    The blockchain network looks to introduce a key defi solution on Bitcoin (BTC) as innovations like inscriptions and spot ETF chatter fuel BTC’s narrative. The new L2 network will bring staking to Bitcoin and aim to unlock a potential multi-billion dollar market through its platform. 

    The arrival of BeL2 means that Bitcoin is now ‘smart’, highlighting the potential for Bitcoin holders to stake their assets directly and earn interest on their holdings. It’s always been an anomaly that Bitcoin reserves remained effectively ‘dormant’ between transactions.

    Sasha Mitchel, head of Strategy and operations, BeL2

    In addition to BTC staking and providing direct yield via the BeL2 network, Elastos also plans to offer cheap transactions on native decentralized applications. However, the company’s statement did not clarify if this product would integrate the Lighting network, another purpose-built L2 network focused on facilitating swift and affordable BTC-denominated transactions,

    Furthermore, Elastos plans to chart the defi course on BTC by enabling smart contract deployment and irreversible digital agreement between participants. 

    Now Bitcoin owners can put the world’s most popular, liquid, and secure digital currency to work, potentially unlocking over $700 billion in value.

    Sasha Mitchel, head of Strategy and operations, BeL2

    Elastos unveiled their plan to essentially bootstrap decentralized finance on Bitcoin during a period of increased interest in crypto’s largest blockchain and token. Not only is BTC up over 150 percent since the start of 2023 and eying a continued rally following a brief correction, users have also developed a technology called inscriptions.

    This involves adding digital data to transactions in a method akin to NFTs on blockchain like Ethereum and Solana. Inscriptions account for between 20  percent and 30 percent of total transaction fee revenue generated by BTC miners this year.  At the same time, inscriptions also consumed a minority share of block space according to Glassnode.

    Bitcoin inscriptions fee share | Source: Glassnode


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    Naga Avan-Nomayo

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  • A decentralized revolution: Empowering the masses with home staking | Opinion

    A decentralized revolution: Empowering the masses with home staking | Opinion

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    Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.

    Blockchain technology has long held the promise of decentralization, offering the potential to redefine how we interact with data, value, and trust. As this technology continues to emerge fast, the concept of “home staking” emerges as a powerful force that has the potential to reshape the landscape of blockchain networks.

    This begs the question: How does home staking empower the masses, and why is it crucial for the web3 ecosystem in the present and future?

    At its core, blockchain technology promises a decentralized future where power and control are distributed among a vast network of participants. However, the reality hasn’t always lived up to this promise. The barriers to entry for running a validator node on many blockchain networks can be daunting. It often requires substantial technical know-how, expensive hardware, and significant capital investment. These barriers create an unintentional hierarchy within the blockchain ecosystem, where only a select few can participate as validators.

    Through Ethereum, storage inefficiencies and high synchronization times plague the ability of ordinary people to operate a full node, resulting in them having to rely on full node services. Additionally, service providers have to cover the cost of running a full node, meaning the cost for users will increase in the form of commissions—which is not ideal, to say the least.  The solution? An efficient and accessible platform with autonomous applications to support what may be defined as complex by ordinary users.

    When we talk about decentralization, we’re referring not only to the distribution of power but also to the resilience and security of the network.  At Over Protocol, the approach to home staking strengthens decentralization by increasing the number of validators. More validators mean greater network security and a lower risk of centralisation—key for accessibility purposes.

    By allowing anyone with a computer to participate in validation, we’re reducing the concentration of power and making the network more robust against potential attacks. It’s akin to creating a vast, decentralized army of validators, each contributing to the overall strength and security of the fast-growing Over Protocol network.

    Decentralization isn’t just about technical aspects; it’s also about financial inclusion. Many people around the world lack access to traditional financial services, and the barriers to entry can be insurmountable. Over Protocol’s home staking removes these roadblocks by providing an avenue for individuals to earn rewards and participate in the blockchain economy without the need of expensive equipment or significant capital.

    Home staking opens up a world of financial opportunities. It allows individuals to earn rewards for their participation, potentially improving their financial circumstances. It’s a gateway to a new financial ecosystem where anyone, regardless of their background, can participate and benefit.

    All in all, home staking is not just a concept; it’s a fundamental shift in how we approach validation and participation in blockchain networks. It’s a step towards a more equitable and inclusive blockchain ecosystem—a crucial variable in creating a more adoption-friendly, next-generation web3 platform.

    Ben Kim

    Ben Kim is a founder of Superblock and is involved in the development of Over Protocol. He received a bachelor’s degree in electrical and computer engineering from Seoul National University and is pursuing a doctorate in virtual machine optimization research at the same graduate school. His notable thesis, titled “Ethanos: Efficient Bootstrapping for Full Nodes on Account-Based Blockchains,” focuses on optimizing Ethereum’s storage size and synchronization time and serves as the foundational technology for the Over Protocol.


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  • Proof-of-Stake Market Cap Takes A 7% Hit, Now At $254 Billion – What Does It Mean?

    Proof-of-Stake Market Cap Takes A 7% Hit, Now At $254 Billion – What Does It Mean?

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    Proof-of-Stake (PoS) assets have recently faced a notable shift. According to a report, the market capitalization of PoS assets took some kind of beating, dropping by 7% in the third quarter of the year, with the total value shrinking to $254 billion. This decline has raised questions about the performance and future prospects of PoS assets.

    PoS assets are a type of cryptocurrency that operates on a different principle than Proof-of-Work (PoW) assets like Bitcoin. In PoS, the validation of transactions and creation of new blocks are not dependent on energy-intensive mining processes. Instead, validators, or “stakers,” are chosen to create new blocks and verify transactions based on the number of coins they hold and are willing to “stake” as collateral.

    This shift away from PoW to PoS assets reflects a growing concern for the environmental impact of energy-consuming blockchain networks, as PoS is more energy-efficient.

    Proof-Of-Stake: Market Capitalization And Staking Rewards

    The report also revealed that while the market capitalization of PoS assets decreased, the total value of staked assets increased by 3% to reach $74 billion. Staking rewards, on the other hand, saw a decrease of 7%, dropping to $4.1 billion annually. 

    Image: Wall Street Mojo

    The average PoS staking yield averaged at 10.2%, representing a 4% decrease compared to the previous quarter. These statistics suggest a complex landscape for PoS assets, with some indicators moving in opposing directions.

    When we look at the share of PoS assets in comparison to the total cryptocurrency market capitalization, the report indicates that it now stands at 22%, which is a 2% decrease compared to the previous quarter. This suggests that PoS assets have seen a relative decline in prominence within the broader cryptocurrency market, which is dominated by assets like Bitcoin.

    ETH market cap currently at $215.531 billion on the daily chart: TradingView.com

    Proof-Of-Stake: Insights And Implications

    The fluctuations observed in proof-of-stake assets during the third quarter of the year provide valuable insights into the constantly evolving landscape of cryptocurrencies.

    While the decrease in market capitalization may raise some concerns, a closer look at the significant increase in staked assets, notably within the Ethereum ecosystem, presents a more optimistic perspective.

    This growing trend of assets being staked, particularly in a prominent blockchain like Ethereum, indicates a sustained and robust interest in the proof-of-stake model.

    The shifting dynamics of the market and the impact of Layer 2 networks on Ethereum’s performance are areas that require close monitoring in the coming quarters. As the cryptocurrency ecosystem continues to move forward, adaptability and innovation remain key to the success of PoS assets and networks.

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    Christian Encila

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  • How The DeFi Space Has Become A Massive Breeding Ground For Crypto Ponzi Schemes

    How The DeFi Space Has Become A Massive Breeding Ground For Crypto Ponzi Schemes

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    A large number of recent Ponzi schemes have used decentralized finance (DeFi) infrastructure to defraud their customers. This article explores the DeFi ecosystem and how fraudsters are able to exploit it to steal from crypto newbies.

    DeFi is a broad term for financial infrastructure and financial services provided on public blockchains via smart contract technology. Ether
    ETH
    eum, Binance Chain, Cardano
    ADA
    , and Solana
    SOL
     are among the most popular smart contract blockchains, allowing developers to create dApps (decentralized applications) on their network. These dApps can be used for a variety of purposes, but the majority of them are financial in nature, giving rise to the term “DeFi.”

    DeFi development has progressed to the point where token creation templates exist, allowing anyone to create a token in a matter of minutes without any programming knowledge or experience. This opens the door to a Pandora’s box in which token creators can create great decentralized applications while malicious people can use the technology to create malicious dApps such as Ponzi schemes.

    Ponzi schemes are illegal in practice. Some blockchains, however, are decentralized, and there is no single jurisdiction in charge of enforcing compliance with local laws. Some centralized blockchains are based in areas with little or no oversight over their operations. This opens the door for fraudsters to set up Ponzi schemes on these chains.

    Most blockchains that allow for the development and deployment of dApps do not require a know-your-customer (KYC) process. This means that people can create dApps anonymously.

    So, what exactly are Ponzi schemes, and how do they function in the DeFi space? A Ponzi scheme, named after the Italian con artist Charles Ponzi, is an investment fraud that pays existing investors with funds collected from new investors. It does not necessarily invest the funds of the investors, but it promises existing investors high returns in a short period of time, which are frequently higher than all other mainstream yields.

    Ponzi schemes rely on the number of new investors increasing indefinitely. If a Ponzi scheme fails to attract new investors, it will collapse quickly. Furthermore, if a large number of investors rush to withdraw their funds, the Ponzi schemers realize they are losing money and close shop because they are unable to honor the debts. In other cases, authorities may raid a Ponzi scheme office and, upon discovering that it is an illegal enterprise, it collapses immediately.

    For example, the most recent Ponzi scheme involved Eddy Alexandre, CEO of EminiFX, who promised investors a weekly 5% return on investment. The FBI apprehended him last week for allegedly defrauding his clients out of more than $59 million. He claimed to have a “Robo-Advisor Assisted account” system that would invest the monies in crypto and Forex. Beware of such scams and practice due diligence before investing in such a product.

    Ponzi schemes in the DeFi space may take a different approach to defrauding customers. This can range from promising the next 100x
    ZRX
     moonshot (a token sold at a low price in exchange for a legitimate coin/token with the promise that the new token value will increase 100 times) to promising high staking rewards for new token holders. In other cases, DeFi Ponzi scammers will sell tokens to unsuspecting buyers while promising high staking rewards.

    Staking rewards and yield farming are the two most appealing features in DeFi ecosystems. DeFi users will deposit and lock their tokens on the platform to earn a huge annual percentage yield because DeFi ecosystems rely on staked tokens for consensus. This means that if you stake your tokens on a DeFi platform that pays out, say, 1000 percent (yes, they can get that high) annually, you will have 10 times more tokens in a year.

    However, because the majority of participants are also staking, the staking rewards amount to token inflation, which drives the price down. This means that in order for you to sell your staked tokens for a profit after a year, the ecosystem must experience a significant increase in new investors to offset the increasing supply. Because it relies on new investors to maintain its value, it is similar to other Ponzi schemes.

    Of course, not everyone will agree with me, but the similarities are striking. If a DeFi protocol with high staking rewards does not attract new investors and is unable to burn excess supply, its price often crumbles.

    Fraudsters who sold tokens for Bitcoin, Ethereum, Binance Coin, or any other seemingly valuable token make the most profit. Simply put, the con artists sell their clients an asset that they can inflate for an asset that they cannot, promise high returns, and then flood the market with more tokens in exchange for more tokens that they cannot inflate after the DeFi protocol goes live.

    Yield farming, on the other hand, is dependent on the community providing liquidity for participants to buy newly minted tokens on a decentralized exchange. A yield farmer will technically purchase an equal dollar amount of two assets. Half of it goes to the newly minted token, and the other half to a counter token/coin like Ethereum or USDT.

    Following that, the new liquidity is added to a pool on an automated market maker (AMM) platform (Often described as a decentralized exchange). New entrants to this pool can automatically convert their tokens such as Ethereum or USDT for the newly minted token. The fees charged on transactions in this pool are distributed automatically to the liquidity providers (yield farmers).

    To consistently earn high yields from yield farms, fraudsters may charge high transaction fees, and future growth is heavily reliant on a massive increase in new users. Most yield farm rewards will be denominated in the newly minted token. As the DeFi Ponzi scheme expands, fraudsters frequently attack this automated liquidity by exchanging newly minted tokens for the counter coin/token, driving the price down to zero or close to it. Yield farmers and stakers in most DeFi Ponzi schemes are often left holding billions of worthless tokens.

    There is a good number of DeFi protocols that provide value and utility to their investors. Others prevent fraud by going through audit certifications while others plan periodic token burns to reduce inflation.

    As a new crypto trader looking to invest in DeFi, it is critical to ensure that the token you are purchasing does not rely on the growth of new users, as this has a strong correlation with Ponzi schemes. Furthermore, if the high returns promised by a DeFi protocol are not the result of value creation and utility, they are most likely the result of new investors, raising the correlation with Ponzi schemes.

    Almost all DeFi scams attribute the theft of client funds to “unknown scammers.” For example, the founding brothers of the South African Africrypt DeFi Ponzi scheme allegedly stole $3.6 billion in what is considered the largest DeFi heist in history. Before defrauding over a quarter million customers and claiming that they were hacked, the two brothers claimed to have an AI-driven trading system that was earning above-market returns.

    If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.

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    Rufas Kamau, Senior Contributor

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