Kategorie: Ethereum News

Cake DeFi has launched its Ethereum staking service and also allows users to unstake their tokens whenever they like.

Cake DeFi, the leading, fastest-growing Singapore-based fintech firm providing easy access to Decentralised Finance (DeFi), has announced the launch of its Ethereum staking service.

According to the press release shared with Coinjournal, Cake DeFi said its ETH staking service comes with added access to liquidity via a tradable token that can be sold in the open market.

Staking ETH tokens is now possible thanks to the Ethereum network’s recent migration from its proof of work to proof of stake protocol. 

While staking on the Ethereum network is now possible, Cake DeFi explained that unstaking is currently not supported by the Ethereum network. Investors will have to wait for the Shanghai upgrade to unstake their ETH, which could be a year or so later. 

Cake DeFi said it would soon make it possible for its users to stake and unstake ETH tokens whenever they wish. Dr. Julian Hosp, Co-Founder and CEO of Cake DeFi, commented that;

“ETH Staking is the latest addition to our popular Staking service. We made a deliberate decision to host our own nodes in Singapore. At the moment, Ethereum nodes are mostly concentrated in North America and Europe.  Hosting our own Singapore-based nodes will boost the confidence of investors and developers in the region and support the spirit of decentralization. Many exchanges and platforms are not offering ETH unstaking until the Shanghai upgrade, but it was important for us to provide liquidity to our ETH stakers which will be achieved via an open market.” 

Cake DeFi said its ETH Staking service would enable users to earn around 5% annual percentage yields in return. Returns in Cake DeFi’s ETH staking will also be auto-compounded every 12 hours to generate significantly more returns compared to non-compounding ETH staking, the team added. 

Cake DeFi is a fully transparent, highly innovative fintech platform dedicated to providing access to decentralized financial services and applications by enabling users to generate returns from their crypto and digital assets. It is operated and registered in Singapore and is subject to applicable laws and regulations in Singapore.

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The long-awaited Merge upgrade of the Ethereum Network was successfully completed in the early hours of Thursday, September 15, 2022. The timing corresponded with earlier predictions by Ethereum developers depending on the Ethereum hashrate.

The Merge upgrade creates a more energy-efficient blockchain network since Ethereum has since shifted from being a proof-of-work (PoW) blockchain network to a proof-of-stake (PoS) network. However, the price of Ether (ETH) fell sharply after the Merge and in the early hours of Friday, it was trading at $1,474.20, down about 7.93% from Thursday’s price level.

Nevertheless, analysts expect the price to surge in the coming days once investors unwind hedges that they had bought anticipating hiccups in the rollout. So far, no issues have been reported with the Merge; something that is likely to trigger confidence among investors and possibly drive the prices higher.

According to Jon Charbonneau, a researcher at crypto research firm Delphi Digital, the Merge marks the “biggest event in crypto since the creation of bitcoin and Ethereum. Assuming all remains well, attention will turn toward future Ethereum upgrades.”

To assist investors and traders purchase the Ethereum token after the merge, Coinjournal has prepared this brief guide on the best places to buy Ethereum.

Continue reading to find out more.

Where to buy Ethereum (ETH)

eToro

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Skilling

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What is Ethereum?

Ethereum was the second blockchain network to be developed after Bitcoin, which was the first blockchain to be developed. Its native token/cryptocurrency Ether (ETH) is the second largest cryptocurrency by market cap.

At their launch, both Bitcoin and Ethereum were designed to use a PoW consensus mechanism in confirming transactions within the networks.

However, the PoW mechanism has proved to consume a lot of energy impacting negatively on the environment. Ethereum has embarked on shifting to a PoS mechanism that is less involving, less energy-consuming, and more efficient than the PoW.

Ethereum successfully completed the migration into a PoS system through the Merge Upgrade on Thursday, September 15.

Following Ethereum’s merge, a new ad campaign is underway targeting Bitcoin’s energy use because of its proof-of-work (PoW) consensus mechanism.

Should I buy ETH today?

Suppose you want to invest in a popular cryptocurrency that is expected to considerably rise in the coming days. In that case, ETH could be a good choice, especially after the successful Merge upgrade.

However, the cryptocurrency market is extremely volatile, and you should invest cautiously.

Ethereum coin price prediction

Despite the price fall after the Merge, analysts expect the price of Ethereum to surge possibly above $2K in the coming days once investors unwind their hedge positions since there are currently no hiccups recorded following the Merge upgrade.

$ETH social media trends

„The merge will reduce worldwide electricity consumption by 0.2%“ – @drakefjustin

— vitalik.eth (@VitalikButerin) September 15, 2022

 

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• GlobalBlock analyst Marcus Sotiriou talks about the Ethereum merge, its benefits and potential risks to the event.
• He says the yield factor and a 99.95% reduction in energy use could see DeFi flourish and catalyse investor interest.
• But it’s a ‘complex technical event’ that one.

Is the merge underrated or is it priced in? It could be a crucial question for investors as crypto enters what could be a pivotal week for crypto, according to crypto analyst Marcus Sotiriou.

The countdown to Ethereum (ETH)’s most anticipated event – the Merge – is down to hours. And despite the price hovering below $1,750 after last week’s downside, optimism is still high that the major event will succeed.

Or will it…

Is it underrated or priced in?

We saw ETH price rally in the days after the merge date announcement before the momentum fizzled out alongside the rest of the crypto market.

But price continues to struggle, currently around $1,730 since last week’s dip. For investors, one of the questions to consider going into the event is whether the ETH merge is already priced in or if the market has underrated its potential impact.

Here is something to remember about the merge.

The benefits

Sotiriou, an analyst with digital asset broker GlobalBlock, says the merge is no doubt “the most impactful event that has happened in the crypto industry thus far.”

The advantages of the changes are there. For instance, reduction in network energy usage by 99.95% is great for the ESG narrative. Basically, it helps remove one of the hurdles to increased institutional interest in ETH and the broader ecosystem – concerns over crypto mining and its energy consumption.

Another long-term implication the analyst sees is around the 5% yield for ETH investors and its impact on wider DeFi space. Knowing how to price in risk based on the yield will not just benefit retail DeFi, but institutional investors too.

“Institutional investors love cash flow,” he pointed out in the note, “so being able to receive a lucrative yield is another enticing benefit which could make ETH more investable for them.”

A ‘complex technical event’ – beneficial but with risks

Many investors see Ethereum’s transition from a proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS) mechanism as a positive event bound to happen this time round after several delays. 

However, Sotiriou warns it might not be smooth sailing all at once when the Beacon Chain merges with Ethereum mainnet.

Some observers say that an unforeseen delay, or some other technical hurdle that makes the switch messy could still pop up and frustrate investors. Issues could also arise if many validators fail to update their software in time and therefore be unprepared for the new chain, or if some APIs “break in ways which many people cannot predict.”

Sotiriou sums up the risks thus:

“The Merge is such a complex technical event, which is not surrounding just one big company, but a whole decentralised network, so there are reasons why it may not play out so smoothly.”

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Sam Bankman-Fried, the CEO of crypto exchange FTX, believes that Ethereum’s Merge will be rocky in its early days but will be beneficial to the broader ecosystem in the long term.

Sam Bankman-Fried, the CEO of crypto exchange FTX, and Anthony Scaramucci, SkyBridge Capital founder, granted an interview to CNBC earlier today, discussing several topics, including the upcoming Ethereum Merge.

The Ethereum Merge will see the Ethereum blockchain transition from a proof of work (PoW) mechanism to a proof of stake (PoS). The move is designed to make the Ethereum network faster, more scalable, more environmentally friendly and less expensive to use.

While commenting on the Ethereum Merge, Bankman-Fried said;

“I think long term it is going to be exciting for the Ethereum community. It is going to allow substantially faster and cheaper processing of transactions. However, I do think that it is going to be, as big other transitions are at the beginning, rocky. I think there is going to be some messy activity around when it happens. That is inevitable.”

The FTX boss said in the Medium to long term, the Ethereum Merge will be helpful to the broader cryptocurrency ecosystem. 

When asked to explain what he meant by messy at the beginning, Bankman-Fried said not everyone in the Ethereum community is okay with the proof of stake mechanism and prefer the proof of work.

Furthermore, so many developers will need to update their software and sync to the new chain. Developers will also need to learn some new things to ensure that their protocols operate as initially designed. He said;

“I don’t think it is going to be a huge deal medium term, but it is a big transition, and with an entire decentralised ecosystem carrying out the transition at once, some people will flop it, and it will take some time to clean it up.”

Bankman-Fried said although it would work out fine for everybody, in the end, there would be some rough patches around the edges.  

Scaramucci added that despite the progress made in the cryptocurrency market, we are still early, and the market has a long way to grow from here. 

FTX is one of the fastest-growing cryptocurrency exchanges in the world, recording massive growth over the past few years.

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The US subsidiary of Binance has today announced that it will introduce an Ethereum (ETH) staking program ahead of the upcoming Merge upgrade. The staking program will have an annual percentage yield (APY) of up to 6.0%.

Unlike direct staking on the Ethereum blockchain which normally requires one to have at least 32 ETH to participate, the Binance staking will only require a minimum of 0.001 ETH.

While commenting on the new development, the CEO of Binance Brian Shroder said:

“ETH plays a critical role in the broader Web3 ecosystem. As the Ethereum network continues to transition towards The Merge, we are thrilled to offer ETH staking with some of the highest APY rewards in the industry.”

The staking yields

The program’s staking yields will be in part enhanced by features like the Binance US’ automatic restake that allows for compounding of returns.

However, those who stake their ETH at the movement will not be able to unstake the ETH until Ethereum performs its first transaction on its Proof-of-Stake (PoS) blockchain once the Merge upgrade takes place.

The merge is slated to take place on September 15 although the high Ethereum hashrate may result in the upgrade happening earlier than expected. Users will be allowed to withdraw their staked ETH from the Ethereum network after another upgrade referred to as the “Shanghai Upgrade” which depends on the successful completion of the Merge upgrade.

Nevertheless, because of the complexity of the upcoming Merge upgrade, there is no guarantee of a smooth transition and users’ funds are subject to risks such as protracted return on the invested funds or loss of the funds in case the upgrade fails.

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