In just 4 days, as many as 100,000 ETHs were deposited

In just 4 days, as many as 100,000 ETHs were deposited on Kraken for ETH 2.0 staking

The tokens, worth over 60 million dollars, have already been blocked on Eth2 thanks to the staking service offered by the well-known Kraken exchange.

Just four days after the launch of the staking service on Eth2, customers of the popular US exchange Kraken have already deposited more than 100,000 Ether, worth a total of over $60 million.

The figure was exceeded on 8 December; the Bitcoin Era scam exchange estimates that its staking service accounts for around 8% of all ETHs deposited to date on the Ethereum 2.0 contract: Kraken believes it will provide between 5% and 17% APY.

Kraken’s vice president of product, Jeremy Welch, said the exchange has „long been a supporter of Ethereum“, pointing out that the company was one of the first to list Ether in August 2015.

Welch also noted that, according to data updated as of December 1, the ETH volumes traded on Kraken are between 15% and 40% of Bitcoin volumes.

Kraken is not the only exchange to offer Eth2 staking as a service

Binance, Huobi, and Bitcoin Suisse also launched similar products in the last week. OKEx also plans to do the same by the end of the month, while Coinbase will come into play „early 2021“.

This way, however, a significant proportion of the ETHs reserved for staking could actually be in a few large centralised exchanges.

MyEtherWallet has also announced the integration of a staking DApp called „Staked“ into its software. MEW users are now able to stake Ether via both the web interface and the Android wallet app. Staked’s CEO, Tim Ogilvie, said:

„MEW is rightly considered one of the first wallets for Ethereum, and it’s only fair that MEW users can now take advantage of our staking infrastructure to participate in the important Ethereum upgrade.

Although the launch of the Eth2 Beacon Chain at the beginning of the month started ETH staking, users will not be able to withdraw their tokens until transfers are enabled on the network: some speculate that this functionality will not be available for at least the next 12 months.

It seems that many stakers have turned to third-party service providers, not to worry about incurring penalties for problems in their node.

Some Eth2 validators have already complained that their Ether is blocked until the withdrawals are activated, without being able to earn rewards because of the slashing penalties.