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.
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.
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