The chilly crypto winter (despite the recent uptrend) hasn’t been easy on many of the young crypto companies out there, but even well established giants like Coinbase are feeling the heat (Coinbase stock down 55% in the last 6 months).
And when times are tough – HODLing and Staking is where its at. At least according to Coinbase CEO, Brian Armstrong.
In his recent shareholder letter (and call), he said
As a result of our core retail customer trading less, our MTU mix has trended more towards non-investing activities – notably staking.
In addition, Coinbase says its goal is to become the #1 staking provider among crypto exchanges, a feat that would significantly increase the company’s revenue.
Staking is a significant part of the shareholder letter, with the company also mentioning that in early August, they began offering Ethereum staking for institutional clients for the first time, and that they’ll continue to add more assets for staking for both our retail and institutional clients going forward.
Right now, Coinbase offers staking services for assets such as Ethereum, Cosmos, Algorand and Tezos. It added Cardano in March and most recently, Solana.
Why Coinbase focusing on staking is a good thing
With Coinbase Staking (aka Coinbase Earn) becoming a top focus for the company, the race for staking market share dominance will only keep heating up – which is a great thing for both consumers, and for staking decentralization in general (when considered in the context of decentralization between exchanges).