Cryptocurrency exchange Coinbase has announced it will now offer staking for the native cryptocurrency of the Cardano blockchain, ADA.
Over the last year, Coinbase has been on a listing mission ranging from Wrapped Centrifuge (WCFG) to ApeCoin (APE).
One thing the company is doing is amplifying its staking options. Coinbase senior product manager Rupmalini Sahu explained ADA’s top 10-marketing capitalization as a “flexible, sustainable and scalable” blockchain design.
Not dissimilar to Ethereum and Solana, the design uses smart contracts to enable activities on the network like decentralized finance and NFTs.
As a proof-of-stake cryptocurrency, Cardano’s network isn’t secured through mining like bitcoin but is secured by users putting a portion of their ADA holdings into the network. In doing so, they will obtain a share of newly minted ADA.
To an average user, a staking process can seem daunting or even time-consuming, so this is where Coinbase and various other cryptocurrency exchanges step in by pooling ADA together on the Cardano network.
After this, a portion of rewards are redistributed with an estimated annual return of 3.75% distributed every five to seven days.
Cardano seems to be having a great week so far, with a price jump from $1.00 to $1.09 at the time of writing. The rate of ADA has risen to 30% over the last week compared to Ethereum seeing a 10% rise and Solana an 8% increase.
As Coinbase’s fifth coin, ADA provides staking services for Cosmos, Ethereum, Tezos and Algorand. With plans to continue scaling its staking portfolio throughout 2022.
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