Can Coinbase Adding Cardano Staking Rewards Further Aid Price Pump?

Key Insights

  • Coinbase expands staking offerings to include Cardano.

  • The current estimated annual return for ADA staking on Coinbase is around 3.75% APY.

  • The recent price uptrend seen in ADA’s trajectory combines healthy technicals and ecosystem-centric upgrades.

Top coins are re-tracing their way upward, with the larger market seemingly back on track to register a much-awaited recovery. Nonetheless, market-centric and ecosystem-based upgrades have acted as catalysts for the favorable price momentum apart from the more significant gains.

One of the top show stoppers of this week has been Cardano (ADA) which finally managed to pull its price above the $1 mark after being under the price level for over a month. Positive market news has been key to ADA’s recent price jump, apart from larger market recovery.

Coinbase Adds Cardano Staking Rewards

The publicly-traded cryptocurrency exchange Coinbase announced on March 24 that it would offer staking for ADA, the native cryptocurrency of the Cardano blockchain. This move aligns with Coinbase’s plans to continue scaling their staking portfolio in 2022.

A blog shared by the exchange highlighted that the current estimated annual return for Cardano staking on Coinbase is around 3.75% APY. Coinbase’s Senior Product Manager Rupmalini Sahu explained the decision by pointing out,

“ADA is in the top 10 coins by market capitalization, and it has a flexible, sustainable, and scalable blockchain design. That design uses smart contracts, similar to Ethereum and Solana, to enable decentralized finance, NFTs, and other activities on the network.”

Notably, Coinbase has been on quite a listing spree since last year; the exchange also recently added ApeCoin (APE). Coinbase aims to increase its staking options, as Sahu highlights the exchange’s “plans to continue to scale its staking portfolio in 2022.”

Notably, ADA joins a list of coins for Coinbase provides staking services, including Algorand, Cosmos, Ethereum, and Tezos.

ADA Finally Above $1

Cardano’s price has witnessed a significant boost after months of downtrend. A crucial development that fueled a bullish narrative among investors for ADA is Cardano’s network upgrade that increased Plutus’ per block script memory units to 62 million.

Historically, Cardano’s network upgrades have had a bullish impact on altcoin’s price trajectory, fueling demand for ADA across exchanges. At press time, ADA traded at $1.11, noting a 14.66% daily and a 31.69% weekly rise in price.

Cardano’s recent price uptrend combines a technical bounce from oversold levels and a bullish long-term outlook considering the upcoming network upgrades.

This article was originally posted on FX Empire


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