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More than 100,000 ETH locked for staking via Kraken in four days

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2 Wochen ago

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Just four days after it launched its Eth2 staking service, customers of the popular U.S.-based cryptocurrency exchange Kraken have deposited more than 100,000 Ether, worth north of $60 million.

The milestone was surpassed on Dec. 8, with the exchange estimating that its staking service represents approximately 8% of all ETH staked for Ethereum 2.0 so far. Kraken estimates that its service will provide an APY of between 5% and 17%.

Kraken’s vice president of product, Jeremy Welch, stated that the exchange has “long been a supporter of Ethereum,” noting that Kraken was one of the first exchanges to list Ether in August 2015.

Welch also noted that Kraken’s ETH trading volumes are typically equivalent to between 15% and 40% of daily Bitcoin trade as of Dec. 1.

Kraken is not alone in offering Eth2 staking as a service, with Binance, Huobi, and Bitcoin Suisse all launching their own services over the past week. OKEx also expects to launch its own service by the end of month, while Coinbase will join the fray in “early 2021.”

As such, a significant percentage of staked ETH could become centralized among a handful of major exchanges.

Ethereum wallet interface MyEtherWallet has also announced the integration of staking DApp ‘Staked’. MEW users are able to stake Ether via the company’s web interface or Android wallet application. Staked’s chief executive, Tim Ogilvie, stated:

“MEW is rightly regarded as one of the original Ethereum wallets and it is only fitting that MEW users can now take advantage of our staking infrastructure to participate in Ethereum’s major upgrade.”

While the launch of Eth2’s beacon chain at the start of the month enabled staking for ETH, stakers will not be able to withdraw their tokens until Eth2 transfers are enabled — with onlookers speculating the functionality is unlikely to come online within the next 12 months.

Many stakers appear to have gravitated to third-party service providers so they don’t have to worry about incurring slashing as a consequence of disruptions to their node.

Some Eth2 validators have already complained of their Ethereum becoming locked until withdrawals are enabled without being able to earn rewards due to slashing penalties.



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Ethereum

Crypto enthusiasts could make $122K per year mining Ethereum with this setup

Published

13 Minuten ago

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Dezember 29, 2020

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Simon Byrne has taken at-home crypto mining to a whole new level as he looks to capitalize on Ethereum’s (ETH) enormous price potential. 

As first reported by Anthony Garreffa, Byrne has set up an ETH mining rig consisting of 78 GeForce RTX 3080 graphics cards. Although the RTX 3080 is marketed toward high-end PC gamers, crypto miners are using these powerful specs to enhance their capabilities.

With each card using roughly 300W of power, Byrne’s setup uses 23.4KW of energy. And that doesn’t even factor in associated costs like AC. All said, his electricity bill is estimated to run up to around $2,166 per month.

The RTX 3080 launched in September at a price of $699, but supply shortages have caused the per-unit cost to swell to $1,199. At the shortage price, that’s a price tag of $93,522 for Byrne’s setup.

Still, these costs could be offset by the operation’s mining capability. One GeForce RTX 3080 graphic card has a hash rate of around 83MH/s using Ethash, which should generate roughly 0.22236870 ETH per month, according to Garreffa. All 78 cards would therefore generate 17.3 ETH per month, which is equivalent to around $12,352 at today’s prices.

Stripping away the electricity costs, that’s roughly $10,200 per month or $122,000 per year. And that’s not factoring in Ethereum’s price potential during the next bull market.

Ether’s price zipped past $700 over the weekend, the first such move since mid-2018. The return of altseason, as some have predicted, could send ETH’s price even higher over the medium term as investors cycle from Bitcoin to other large-cap cryptocurrencies.