Validator service to use API for ETH staking process

April 12, 2023 Coin Telegraph

The project is also targeting institutional investors by allowing the setting up of 1,000 validators for ETH staking within its platform.

Ether (ETH) unstaking, brought about by the Shappella upgrade, a service aimed at validators, is aiming to make staking easier by utilizing Application Programming Interfaces (APIs).

In an announcement, blockchain infrastructure provider InfStones said that it's expecting a heightened market demand for ETH staking as the Shanghai upgrade comes. Capitalizing on the event, the platform said that it is aiming to attract more participants to the Ethereum ecosystem by creating an easier staking experience through its validator service.

InfStones founder Zhenwu Shi said that their Ethereum validator service lets anyone launch validator nodes for staking purposes with just a few clicks. In addition, the platform also allows participants with less than 32 ETH to stake their tokens after the Shanghai upgrade. At the moment, there is a requirement of 32 ETH to participate in staking.

Apart from users, the project is also targeting institutional investors by providing a way to set up around 1,000 validators for ETH staking with its platform.

Meanwhile, pressure from regulators in the United States and the Shapella upgrade are being cited as the reason why Ethereum staking deposits have slightly declined. On April 10, blockchain analytics firm Glassnode highlighted that deposit trends by staking providers have shifted over time. According to analysts, liquid staking platforms may get a boost when ETH gets released from the Beacon Chain following the Shapella update.

After Ethereum core developers set the date for the Shapella upgrade, community members expressed various sentiments on the news. Many praised the developers for the next milestone for the Ethereum ecosystem. Meanwhile, as others celebrated, some chose to have fun and suggest that those who will get their profits from staking should buy nonfungible tokens with their ETH.

Magazine: The secret of pitching to male VCs: Helping female crypto founders blast off

Ethereum Will Introduce Something Magical After the Merge, Says Macro Guru Raoul Pal – Here’s What He Means

September 14, 2022 The Daily Hodl

Ether price could ‘decouple’ from other crypto post Merge — Chainalysis

September 8, 2022 Coin Telegraph

chainalysis

Chainalysis suggests ETH could decouple from other cryptocurrencies post Merge as its staking rewards could make it similar to bonds or commodities.

Crypto analytics firm Chainalysis has suggested that the price of Ether (ETH) could decouple from other crypto assets post-Merge, with staking yields potentially driving strong institutional adoption.

In a Sept. 7 report, Chainalysis explained that the upcoming Ethereum upgrade would introduce institutional investors to staking yields similar to certain instruments such as bonds and commodities, while also becoming much more eco-friendly.

The report said ETH staking is expected to offer a 10-15% yield annually for stakers, therefore making ETH an “enticing bond alternative for institutional investors” considering that treasury bonds yields offer much less in comparison.

“Ether’s price could decouple from other cryptocurrencies following The Merge, as its staking rewards will make it similar to an instrument like a bond or commodity with a carry premium.”

According to Chainalysis data, the number of institutional ETH stakers — those with $1 million worth of ETH staked or more — has “been steadily increasing” from under 200 as of January 2021 to around 1,100 as of August this year.

The firm notes that if this number increases at a faster rate following The Merge, this should confirm the hypothesis that institutional investors “do indeed see Ethereum staking as a good yield-generating strategy.”

The Chainalysis report also tips ETH to draw in more retail and institutional traders after The Merge, as the forthcoming upgrade will make staking a much more attractive investment tool.

Currently staked ETH is locked up in a smart contract that cannot be withdrawn from until the Shanghai upgrade comes around six to 12 months after the Merge goes through.

As such the staked ETH market is currently illiquid, resulting in some staking service providers offering synthetic assets that represent the value of the staked Ether, the drawback however is that “those synthetics don’t always maintain a 1:1 peg," argues the firm.

“The Shanghai upgrade [...] will allow users to withdraw staked Ether at will, providing more liquidity for stakers and making staking a more attractive proposition overall,” the report reads.

Another factor highlighted is that the Ethereum blockchain’s proof-of-stake transition will see its energy consumption requirements drop by as much as 99% following the upgrade, as per the Ethereum Foundation.

“The switch to PoS will also make Ethereum more eco-friendly, which could make investors with sustainability commitments more comfortable with the asset. This especially applies to institutional investors.”

ConsenSys, the firm behind the MetaMask wallet and founded by Ethereum co-founder Joseph Lubin, also published a similar report looking at the “impact of the Merge on Institutions” this week.

The report echoes similar sentiments regarding ETH staking rewards and environmental sustainability attracting institutions, but also highlights the importance of the PoS Ethereum chain “producing stronger security guarantees for institutional investors” along with ETH’s potential to become a deflationary asset:

“Reduced ETH issuance and increased burns will systematically reduce ETH supply — putting deflationary pressure on ETH, thereby alleviating institutional concerns of token price dropping to zero, and increasing likelihood of an increase in value.”

SEBA Bank to provide Ethereum staking services to institutions

September 7, 2022 Coin Telegraph

Coin Telegraph

SEBA Bank executive Mathias Schütz believes that institutions can also play a role in securing the Ethereum network by staking Ether.

As the Ethereum network moves from proof-of-work (PoW) consensus to proof-of-stake (PoS), a digital asset platform initiated a service for institutions to dive into Ether (ETH) staking.

In an announcement sent to Cointelegraph, Swiss digital asset banking platform SEBA Bank said that it has launched an Ethereum staking service for institutions that want to earn yields from staking on the Ethereum network. According to the firm, the move is a response to the growing institutional demand for decentralized finance (DeFi) services.

According to Mathias Schütz, an executive at SEBA Bank, the firm believes that institutions can also play a role in securing the Ethereum network by staking ETH. Schütz explained that:

“The launch of our Ethereum staking services will enable institutional investors to play a key role in securing the future of the network, via a trusted, secure and fully regulated counterparty.”

The executive believes that the upcoming Merge is a very important milestone for the network in terms of security, scalability and sustainability. Schütz also added that launching ETH staking for institutions allows their firm to keep up with the rapidly evolving digital asset space.

Apart from SEBA Bank, other firms have also started to offer staking services in anticipation of the Ethereum Merge. In June, crypto bank Anchorage Digital also announced its ETH staking service for institutional clients. Anchorage Digital co-founder Diogo Mónica said that institutional entry into ETH staking is a "win-win" situation for both the ecosystem and institutions.

Meanwhile, Ethereum mining pool Ethermine created a new staking pool for users to stake ETH collectively and receive interest. Users can join the pool with a minimum of 0.1 ETH. However, the platform noted that lower holdings mean greater fees. At the moment, the platform offers a 4.43% annual interest rate for ETH staking.

Matrixport Launches ‘BTC-U Range Sniper’ — Returns Up to 200% for Accurate Predictions

September 7, 2021 Bitcoin.com

Sygnum Bank Launches ETH 2.0 Staking – Business Unit Head Says ‘Staking Is a Core Element for Portfolios’

July 7, 2021 Bitcoin.com

ETH staking

Share this video