Tezos Gets Ready for Another Price Spike As Kraken Jumps Into XTZ Baking
- After Coinbase and Binance, Kraken will start offering XTZ staking starting Dec. 13
- Over 71% of XTZ supply is already staked, leaving less than 30% in the market
- The 11th largest cryptocurrency is up over 300%, shrinking supply could give it another boost
Cryptocurrency exchange Kraken has joined the staking game. Starting Dec. 13, it will allow its users to leverage proof-of-stake (PoS) crypto holdings to obtain financial rewards, announced the exchange on Dec. 11.
Kraken has become the latest exchange after Coinbase and Binance to offer staking rewards on Tezos (XTZ).
For staking, there is no waiting or lockup periods on Kraken that offers a fixed 6% rate. Payouts of rewards will be every Monday and Thursday.
“Our goal is to make staking as accessible as possible, encouraging deeper participation in this vibrant, young democracy we call crypto,” said the exchange.
To start staking your XTZ, you need to put Tezos into your Kraken Staking Wallet — navigate to “Staking” then click “Stake” under “Tezos.”
Everyone wants to Bake
Early last month, Coinbase started offering Tezos staking. The US-based exchange offers an estimated annual return of ~5%.
However, while Coinbase charges its users fee of 25% of all XTZ staking rewards made through this platform, this month, Binance announced zero-fee Tezos staking with an estimated annual yield of 6%-7%.
Binance might not charge any fee for now, but it is hard to know how long this will remain the case as the world’s leading cryptocurrency exchange charges for staking other tokens.
Gate.io exchange also charges 33% for its XTZ staking service.
XTZ Supply Shrinking
As per Messari, just over 71% of the XTZ supply is already staked. This has been putting pressure on the supply as less than 30% of XTZ has been available in the market for trading.
Now, as another exchange starts offering Tezos staking and more people turn to take advantage of this, this already shrinking supply would further contract.
As such, the price of Tezos which is already up 310% in the past year can take another jump.
At the time of writing, the 11th largest cryptocurrency has been trading at $1.58, up by 4.24% in the currently red market, as per Coincodex.
However, it is still down 87% from its all-time high of $12.26.