Tezos XTZ Staking Is Thriving Despite The High Fees

Tezos XTZ staking is thriving but the fees are as high as 30 percent which is not uncommon among the staking providers. Let’s find out what exactly is the deal in the following tezos news.

A huge part of the growth in staking is mainly thanks to the centralized services such as Coinbase. The Tezos XTZ staking on centralized exchanges increased dramatically over the past month and 27 percent only in January. Coinbase has about 8 percent of the network stake through a balance of 58 million XTZ which makes it the biggest staking provider for Tezos despite the high fees.

While this is not a new concept, staking gained a lot of popularity in 2019 because many crypto projects started abandoning the proof of work concept and moved to proof of stake. With a project such as EOS, TRON, and Tezos swamping the market, the popularity of staking continued to grow as well. The growth in popularity was not present only on social media but hard data supports the observation showing that staking is increasing everywhere.

A perfect example that shows this is Tezos which is a PoS blockchain network behind the XTZ coin. The custodial staking of the coin on centralized exchanges was growing even more in 2020 according to the latest data. The founder of the analytics company Blockwatch Data, Alexander Eichhorn, said that 127 million XTZ was held by the custodians at the end of February and that this number only represents 19 percent of the staked coins while 15 of the total supply. This is a clear 27 percent increase from January when 31 million fewer coins were staked.

Network-wide staking has also increased by 3 percent since last month and reached a new all-time high of 79 percent where only 3 million new  XTZ coins were minted in February. The popularity of staking was expected since it provides a great way for users to earn a passive income. Einchhorn believes that the increase in staking services is impressive. Coinbase has become the largest provider for Tezos in the past few months and the Tezos Foundation is the only entity that manages more stake. Kraken manages slightly over 4 percent.