Coinbase, one of the largest and leading exchanges in the market became the largest Tezos (XTZ) validator. According to a recently released report, Coinbase has overtaken Polychain Labs as the largest Tezos validator. Coinbase has recently announced it allows users to stake Tezos on its platform.
Coinbase: The Largest Validator on the Tezos Network
As per the report, the top 5 validators on the XTZ network include P2P Validator with 12,561,200 XTZ, Binance with 14,904,414 XTZ Cryptium Labs with 23,150,400 XTZ, Polychain Labs with 30,541,730 XTZ and finally Coinbase with 30,660,081 XTZ.
— tWAN (@dantwany) December 13, 2019
According to Bobby Ong, the co-founder of Coingecko, exchanges are expected to be dominating most of the top validators list. Indeed, these platforms can easily start offering Staking services for users without adding fees on the funds staked by the users.
On the matter, he commented:
“We will soon see exchanges dominating most top validators list. Staking as a Service companies will struggle. Exchanges will compete to offer zero fee staking. Easier for users and exchanges can cross-subsidise from their trading biz. Users gets further entrenched into exchanges.”
He went on saying that it would be interesting to see exchanges giving users a choice to select their baker of choice. However, he considers that they are not going to do so, at least in the short-term.
Tezos is currently the 10th largest cryptocurrency in the market with a market capitalization of $1.12 billion and a price per coin of $1.69.
Earlier in November, Coinbase started to offer an easy and secure way to earn staking rewards on Tezos. Users can easily earn rewards by buying XTZ and leaving them on the staking section of the platform. This would allow customers to earn an interest of around 5% annually.
Users can always remain in control of their coins without having to be worried about hacks or attacks. Coinbase has never been hacked up to date.
Coinbase is not the only exchange that is offering staking services to users. Binance, one of the most popular exchanges in the market, has also decided to offer users staking solutions. Platforms are competing for a larger number of users that would not only be using the exchanges to buy and sell cryptocurrencies but also as a platform to interact with the whole crypto space.