Coinbase announced that it would start giving out 3.85 percent APY staking rewards to people who own Solana (SOL) and lock them on the network. After Coinbase incorporated the Solana blockchain into its wallet, this is the next step.
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After Ethereum (ETH), Algorand (ALGO), Cosmos (ATOM), Dai (DAI), Tezos (XTZ), and Cardano, SOL is the next coin supported by Coinbase (ADA).
Users may withdraw their staked SOL at any time from the exchange, and to be eligible for staking rewards, they must hold at least $1 worth of SOL.
Rewards will be handed out every three to four days. Additionally, Coinbase users must finish the platform’s identity verification process before they can stake SOL. All Coinbase users will gradually start to get access to this feature.
SOL is currently trading at $31.8, down more than 9.5 percent in the last day and 12.2 percent in the last week.
Staking is a practice that enables users to earn a passive income simply by keeping coins in their wallets to maintain the functionality of the network that issued them. Staking makes the cryptocurrency’s underlying blockchain more reliable and effective. Users will receive rewards from the network for the coins they stake in return for keeping fixed amounts of coins in their wallets.