CDS Crypto News Staked Ether on Binance Attracts 573M Dollars in Inflows for the Month
Crypto News

Staked Ether on Binance Attracts 573M Dollars in Inflows for the Month

Two days of inflows fueled a more than fourfold increase in Binance staked ether's total value locked.

536
Staked Ether on Binance Attracts 573M Dollars in Inflows for the Month

Crypto News– Binance’s staked ether token, known as BETH, saw a substantial surge in deposits earlier this month, causing the total value locked (TVL) to skyrocket over fourfold to $731 million, as reported by DefiLlama data.

Staked Ether on Binance Attracts 573M Dollars in Inflows for the Month

The launch of this liquid staking token by the exchange took place in April, coinciding with the Ethereum blockchain’s transition to a proof-of-stake network. The TVL had been fluctuating in the range of $120 million to $170 million until a significant influx occurred on September 1, with $165 million deposited in two transactions, followed by a single transaction of $243 million two weeks later. Apart from these two remarkable transactions, daily inflows have generally not exceeded $500,000.

Staked Ether on Binance Attracts 573M Dollars in Inflows for the Month

Liquid staking tokens, such as BETH, are derived from staking ether (ETH) on platforms like Lido, Coinbase, or Binance, with users receiving these derivatives in return. Stakers have the opportunity to earn a yield while retaining ownership of an asset that can be utilized across various decentralized finance (DeFi) platforms.

Data from Etherscan reveals that the four largest holders of BETH are all wallets controlled by Binance, which might indicate Binance’s mirroring of its users’ transactions on-chain.

Although BETH’s TVL remains relatively modest compared to major players like Lido staked ether with $14 billion and Coinbase with $2 billion, the irregular surges in deposits suggest that a single entity or trader is demonstrating confidence in Binance, despite the regulatory uncertainties surrounding the crypto exchange.

Lido, for instance, currently offers a 3.6% annual percentage yield (APY) on staked ether, a rate significantly higher than BETH’s 3.25%. The precise reasons behind staking on Binance instead of opting for a decentralized solution like Lido remain somewhat enigmatic.

Staked Ether on Binance Attracts 573M Dollars in Inflows for the Month

Leave a comment

Leave a Reply

Related Articles

Ethereum White Paper Anniversary: From Concept to Global Smart Contract Platform

Ethereum White Paper Anniversary: From Concept to Global Smart Contract Platform

Bitcoin Liquidations Spike: Over $150M in Longs Wiped Out as Price Slides

Bitcoin Liquidations Spike: Over $150M in Longs Wiped Out as Price Slides

Memecoins Explained: The Intersection of Internet Culture and Crypto

Binance Research's report analyzes the rise of memecoins, highlighting their cultural impact,...

ETH Price Faces Challenges Amid ETF Outflows

Ethereum (ETH) struggles to maintain price above $2,500 amid ETF outflows and...