- Binance has upgraded its ETH 2.0 staking service, renaming it to ETH staking, and will introduce the Wrapped Beacon ETH (WBETH) on the platform from April 27, 2023.
- WBETH tokens will allow users to participate in decentralized finance (DeFi) initiatives outside the Binance exchange while continuing to receive ETH staking rewards.
- Liquid staking products have gained popularity on Ethereum, with over 8 million ETH worth over $15 billion locked into liquid staking derivatives, the majority held by Lido Finance.
Binance’s Wrapped Beacon ETH (WBETH) launch adds more options to the Ethereum liquid staking market. On April 24, the exchange announced that it had rebranded its ETH 2.0 Staking service to ETH Staking, but more importantly, it had added the Wrapped Beacon ETH (WBETH) to its ETH Staking service.
WBETH (Wrapped Beacon ETH); Binance’s Product
Each WBETH token is worth one BETH. Stakers can use the token to participate in DeFi projects outside of Binance, according to the exchange, but they can also earn staking rewards.
The WBETH service will go live on April 27 at 08:00 UTC, and users can convert their BETH into new tokens. It also expects BETH’s value to rise over time “by the daily APR on ETH Staking.”
WBETH essentially allows users to do much more with their staked ETH while also receiving rewards. Only Ethereum and BNB Smart Chain are currently supported, but the exchange promises that more networks will be added.
Liquid Ethereum Staking is on the Rise Following Shapella
Liquid ETH staking is as strong as ever, with Lido currently dominating the market. With over 6.1 million ETH staked, it controls 74.2% of the total share. Coinbase’s liquid ETH staking comes in second with approximately 1.1 million staked ETH, accounting for 13.84% of the market share.
According to a CoinGecko report, liquid staking was one of the hottest trends in Q1 2023, with the highest growth in the quarter. It has been instrumental in driving the DeFi market higher this year.
Liquid staking providers, such as Rocket Pool, have also been releasing new updates to encourage staking. The latter recently implemented an update that allows users to access ETH staking rewards more quickly.
Ethereum Shapella Upgrade was a Success by All Account
Following the Shapella upgrade, Ethereum saw a record influx of over 572,000 ETH staked in a week. The majority of the ETH staked came from institutional staking service providers.
It is worth noting that ETH deposits are increasing while withdrawals are decreasing. This is a positive sign for Ethereum and bodes well for its upcoming major upgrades.
