Tezos gains 3.25%, recording a high at $1.31 as Binance extends staking support for the cryptocurrency.
The 50-Day moving average crosses the 100-period moving average, this is a bullish signal. Moreover, it is also en route to another golden cross with the 200-Day MA. The price of XTZ at 5: 00 hours UTC on 4th December 2019 is $1.25
Binance added support for Tezos (XTZ), staking on its exchange, offering zero fees staking. This is in contrast to the hefty staking fees of 33% to 25% on Coinbase and Gate.io. The share of both exchanges is currently under 4%. Coinbase Custody has a node that stakes about 2.5 million Tezos (about $3.75 million)
Other popular staking providers like Tezzigator and Coinone Exchange charge about 10%. Binance has vowed to change the game entirely by offering zero-free staking.
and so fee compression begins in the game of stakes 👀
Competition for Staking Lead to Centralization?
Ethereum [ETH] is expected to roll out its PoS version next year. The exchanges are expected to compete for the largest share of staking volume.
While Ethereum is down 60% from its yearly high, Tezos has lost only 33% from its high at $1.81. Much of the positive trend can be attributed to the increasing support for the staking of Tezos. Leading crypto exchanges like Coinbase have added support for it. Moreover, Swiss-based SIX Exchange also launched an ETP based on it.
Staking provides periodic rewards on cryptocurrency holdings. Currently, Tezos provides an annual return of about 6-7%. Nevertheless, due to the price fluctuation in XTZ, the actual ROI fluctuates with the market. Moreover, it also reflects on the future of the crypto markets with staking.
According to the current holdings in the market, six of the top ten ETH addresses belong to crypto exchanges and custody platforms. Hence, it is likely that these platforms will carry out the staking for customers as well.
As reported on CoinGape yesterday, the cost of setting up baking nodes would also be cheaper for exchanges than start-ups. Hence, the providers will face tremendous barriers from the leaders.
Do you think that centralization in PoS is good for crypto? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com