One of the leading public-traded crypto exchange platforms, Coinbase, has been on a listing spree, adding almost every innovation in the industry.
It has recently been beefing up its staking assets with the latest edition of the Cardano ADA staking on its platform.
The senior product manager of Coinbase, Rupmalini Sahu, explains the decision behind the move for the Cardano native token by pointing to the huge market capitalization of ADA, which puts it among the top 10 in the industry.
Sahu further added that Cardano’s blockchain design is flexible and scalable and that its sustainability is second to none. The design of ADA incorporates smart contracts similar to those of Ethereum and Solana to ensure decentralized finance, NFTs, and other blockchain-related tasks on the network.
The Choice of Cardano
Cardano’s network is a proof-of-stake digital currency with a reliable security protocol secured not through mining but by the shared commitment of participants who contribute part of their ADA tokens to the network. Participants are later rewarded with some minted ADA tokens.
However, the staking process can be too time-consuming for most users; Coinbase took it upon itself to do it on behalf of the users by pooling the ADA token on the Cardano network and redistributing a part of the reward. By doing this, the stress has been taken off the shoulders of the average user.
By estimate, an annual gain of 3.75% is distributed every seven days and, in some cases, five days.
Cardano’s Price Performance
The Cardano network has had a relatively stable week in the market compared to other leading cryptocurrencies. Its price has jumped to $1.09 from $1.00 at the time of writing.
In the last seven days, the rate of ADA going up is 30%, in contrast to 10% for Ethereum and 8% for Solana.
By being integrated into Coinbase’s staking service, ADA became the fifth coin, joining the likes of Algorand, Cosmos, Tezos, and Ethereum.
According to Sahu, the Coinbase exchange is serious about further scaling the platform as it plans to continue expanding its staking portfolio in 2022 and beyond.
Brian Armstrong, the CEO of Coinbase, has previously echoed the remark made by Sahu. In a tweet, sometime in June last year, the CEO was reported to have said the exchange plans to add as many assets as possible as long as it is legal.
Coinbase has a history of underperformance in previous years but has now pulled itself out of the continuous slump to be among the leading listing exchanges in the industry.
It currently supports up to 168 coins and tokens from different crypto networks on its platform. But it started with just about 60 at the beginning of last year, and it plans to increase the number in the future.
Coinbase is poised to take a leading role in the staking business as envisioned by its management team, but just how far it can go is not yet known.