With an expected annual interest rate of 3.85 percent on Solana (SOL) via staking, Coinbase is promoting its latest offer. Staking is not only considered a good way to let crypto work passively in times of crisis.
Investors beware: The crypto exchange Coinbase has announced the launch of Staking for Solana (SOL) in an announcement. Accordingly, those who deposit their funds in Solana there can expect 3.85 percent annual interest. Staking means depositing suitable altcoins in the network, where they contribute to stability and security. In return, there are bonus payments. Since the process requires technological expertise, many investors leave staking to crypto exchanges or other service providers of their choice. Coinbase now has a total of seven cryptocurrencies in its program with Solana, where Staking is handled conveniently and reliably for customers.
In addition to newcomer Solana, these are Algorand (ALGO) with 5.75 projected APR, Cosmos (ATOM) with 5 percent interest, Tezos (XTZ) with a current 4.63 percent APR and Cardano (ADA) with 2.6 percent. For the stablecoin DAI, there is currently 0.15 percent annual interest to be expected at Coinbase. Staking of Ethereum (ETH) at Coinbase is a special case: here, 3.675 percent annual interest is expected. But the staking is directed at Ethereum 2.0 and ETH deposited there at Coinbase will only become freely available again when the switch to Ethereum 2.0 takes place. The target date for this has already had to be corrected several times and is now expected at the end of 2022 at the earliest.
If you compare staking offers for Solana, you will find significantly higher interest rates at Binance than at Coinbase. But with Binance you have to be ready for “locked staking” and invest your SOL there for fixed periods between 15 and 90 days to get the interest. Coinbase is flexible here and allows you to withdraw the funds provided for staking with interest at any time. The exception is Ethereum, as described.
Conclusion: Staking with SOL and other altcoins as a strategy
So far, the crypto market is experiencing a summer marked by price drops and nervousness. Solana, for example, is down around 75 percent since April and is currently trading at just over $30, miles away from its all-time high of $260 from November 2021. In addition to the trends in the overall market, recurring network outages are causing trouble for Solana, as are problem cases with DeFi under SOL. But despite this, Solana remains one of the few altcoins that have real use cases, and most recently SOL has seen the launch of an exciting mobile initiative. Thus, the current price level could be a good opportunity to build a position in Solana and let it work passively via staking.
Incidentally, this also applies to other altcoins from Binance Coin (BNB) to Polkadot (DOT) where staking is possible. With regular interest payments behind you, you can sit out phases of stagnating or declining prices in a more relaxed manner, and so we generally recommend staking, whether for Solana at Coinbase or other altcoins at competing reputable providers such as Binance.
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