Recently, three popular cryptocurrencies – Chainlink, ApeCoin and Nexo – opened staking to users. Let’s take a closer look at these blockchains and what happens after the launch of the staking protocol.
The concept of “staking” in cryptocurrencies is very popular. This feature allows users to “lock” some of their coins and earn percentage-based rewards in return. By locking (staking) coins, these users can verify transactions and add new blocks to the blockchain.
In exchange for their contributions, these users will be rewarded with newly minted coins. The rewards they receive are proportional to the amount wagered. This is a great way to generate passive income without selling your coins. However, this feature is only available for Proof of Stake (PoS) blockchains.
Recently, three popular cryptocurrencies – Chainlink, ApeCoin and Nexo – opened staking to users. Let’s take a closer look at these blockchains and what happens after the launch of the staking protocol.
Chain link (LINK)
Chainlink, a popular blockchain oracle network, has launched its long-awaited staking v0.1 on December 6, 2022. This upgrade is a key component of “Chainlink Economics 2.0” dedicated to platform security and sustainability.
With the launch of this feature, users will be able to stake Chainlink’s native token, LINK, and earn staking rewards while enhancing the overall security of the platform. However, if the user does not adhere to the on-chain Service Level Agreement (SLA), a portion of her staked LINK will be confiscated and redistributed to other stakers.
This feature will allow nodes to receive incentives to enhance the data efficiency and integrity of the Oracle Network, allowing Chainlink to develop a more secure ecosystem. In exchange, they receive his 4.75% of annual rewards for supporting network performance.
LINK is witnessing some serious gains after launching staking
Chainlink will launch a staking pool on December 8th, where owners can stake up to 7,000 LINK (worth approximately $53,000) per address. Since then, LINK has witnessed massive staking of approximately 24.27 million of his LINK tokens worth $170 million.
The LINK staking cap is set at 25 million, of which the community pool limit of 22.5 million has already been reached. As such, the staking limit for general viewers has already been completed. Now, the rest of his 700,000 tokens must be filled by the node operator.
Overall, LINK suffered heavy losses this year. LINK has plummeted from his $28 at the beginning of the year to his $6.99 at the time of writing. However, the launch of the staking feature has given the project a sliver of hope as enthusiastic fans have responded well to the project. increase.
Ape Coin (APE)
ApeCoin (APE) is the governance token of the Ape ecosystem. This her ERC-20 token holder will be able to vote on improvement suggestions and receive exclusive access to his upcoming NFT launches, games, and other events within the Ape ecosystem.
On December 6th, the Ape Foundation announced on Twitter the launch of the long-awaited ApeCoin staking feature. Under this new feature, users will be able to stake her ApeCoins or BAYC/MAYC NFTs on her ApeStake.io.
The platform has also secured 175 million ApeCoins as staking rewards, representing 17.5% of the total token supply. These coins will be distributed to stakers over the next three years. However, the user will start receiving staking rewards after her December 12th.
After launching the staking feature, the project has deposited approximately $32 million worth of tokens in just one day. With the launch of the staking protocol, APE’s price valuation also jumped 6%, from $3.8 on Dec 4 to his $4.2 on Dec 6. However, APE has regained most of these gains in the following days and is currently trading at $3.96.
ApeCoin has risen nearly 50% from its annual low since mid-November. This is a great sign of recovery in a turbulent market environment, but what’s surprising is that the staking feature has changed the price of his APE and its partner NFTs, namely BAYC (Bored Ape Yacht Club) or MAYC. (Mutant Ape Yacht Club) NFT.
NEXO
Another project launching its own staking protocol this month is Nexo (NEXO). Ranked 80th on the list of top 100 cryptocurrencies, NEXO Coin launched its Ethereum Smart Staking feature on December 7, 2022.
According to the developers of the project, the feature will allow holders to exchange their ETH for NETH or Nexo Staked ETH. The user can then stake her NETH and receive 4-12% of her APY as a staking reward.
The launch of the staking feature has increased the token valuation by 5%. However, Nexo’s staking update comes just days after the platform was forced to cease operations in his eight US states after facing issues with US regulators. This has pushed NEXO down from his $1 in early November to his $0.662 at the time of writing.
Conclusion
The collapse of FTX left a crater in the crypto space. It caused the price of cryptocurrencies to plummet, resulting in his FUD of large investors. As a result, even the most exciting projects struggle to find a strong footing in such a depressing market.
However, the support witnessed by LINK and ApeCoin shows that there are still individuals who believe in the power of crypto and show support for these projects. If the market recovers, we may see another strong bull market, which could bring better profits to these promising projects.
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