- Coinbase starts offering staking rewards on Tezos.
- XTZ surges over 50 percent after the announcement.
- Tezos could be preparing for a significant price move based on many technical indicators.
Tezos skyrocketed over 50 percent in the last 24 hours. The sudden increase in prices took place after Coinbase announced that it would be offering staking rewards on this cryptocurrency. Now, several technical indicators show that XTZ could be bound for a higher impulse.
Staking is the process of holding a certain amount of a given cryptocurrency in a wallet for an extended period to support the functionality of its network. It translates into locking cryptocurrencies to receive rewards. Generally, protocols that support the Proof of Stake (PoS) consensus mechanism use staking as a method to maintain the underlying blockchain secure and efficient.
In a move to provide value to its customers, Coinbase revealed would stake Tezos. The process would be done on behalf of customers, and the rewards will be distributed directly to their accounts. Even though anyone can stake XTZ on their own, this new service offers a simple, easy, and secure way to do it.
The announcement reads:
“[Customers only need to] buy Tezos on Coinbase or deposit Tezos to [their] Coinbase account from an external wallet, and [they’ll] start earning rewards immediately.”
Users must go through an initial holding period of 35-40 days before they can receive the first rewards in their accounts. After that, users will receive their rewards every three days. Coinbase estimates an annual return rate of approximately 5 percent.
Moreover, the San Francisco-based cryptocurrency exchange also launched the Coinbase Earn Tezos campaign. This is an educational initiative that lets customers learn about the Tezos protocol while earning up to $6 worth of XTZ.