Today, there is big news in the crypto space: two exchanges suddenly released 320,000 ETH for staking, worth over 1.5 billion dollars!
BitFlyer just officially announced the 'ETH staking feature' two days ago, and immediately threw 240,000 ETH, about 1.134 billion dollars, into the staking pool, moving as quickly as if they were racing; Binance was not to be outdone, locking 80,000 ETH, about 378 million dollars, into the staking address just half an hour ago.
This wave of operations is quite interesting, with exchanges flocking to staking, clearly eyeing the 'bonus cake' of Ethereum staking: users deposit ETH on the platform, and the platform stakes it to earn returns, which is like shearing sheep from both ends. But upon reflection, it’s also frightening: so much ETH locked up long-term, with a sharp decrease in circulation, may support the price in the short term; however, the staking rights are concentrated in the hands of the exchanges. If the platform goes bust—which has happened before in the crypto space—could these coins become 'hostages'?
Currently, the market is highly volatile, and exchanges daring to stake so much ETH are betting on stable staking returns and a decent ETH market. We need to keep an eye on these giants' staking movements; we might be able to uncover the hidden logic behind the funding battles in the crypto market.
