The US-based cryptocurrency exchange Coinbase has extended its staking services for Tezos (XTZ) to users from a few European countries. The price of the asset has increased by nearly 6% since the announcement yesterday.
Europeans To Stake XTZ On Coinbase
As CryptoPotato reported before, Coinbase added Tezos staking in late 2019 for users based in the US. Since then, the company said that customers had earned over $2 million in Tezos staking rewards.
Now, the cryptocurrency exchange announced the introduction of this particular service to users from some European countries, namely – the UK, France, Spain, and the Netherlands.
Per the statement, “Coinbase will stake Tezos on behalf of customers and distribute rewards directly to customer accounts.”
The estimated annual return for Tezos staking on Coinbase continues to be around 5% based on the rewards generated over the past 90 days. However, it’s worth noting that the exchange “keeps a portion” of the rewards as commission.
The company explained that users will be able to see the pending rewards increase in real-time on the app. Upon completion of the initial holding period (35-40 days), Tezos stakers will receive the awards directly in their accounts every three days.
Staking requires investors to “lock” a specific amount of coins based on the proof-of-stake consensus algorithm or many of its varieties. Stakers typically get the right to vote and to participate in the governance of the network. Since they are not using the staked amount, they receive rewards that could portray the process as rather profitable.
Tezos staking has been especially attractive for investors. The amount of XTZ locked recently surpassed EOS, as almost 93% of all coins in circulations were utilized for staking.
Tezos (XTZ) Price Reaction
Following the news from last year, when Coinbase added Tezos staking for US customers, the asset’s price exploded almost immediately by 70%.
Although the reaction has been much more modest this time, XTZ is again displaying gains. Since yesterday, the asset price jumped by 6% from $2.68 to the current level of $2.84.
What’s even more impressive is how Tezos has performed since the Black Thursday sell-offs when it dipped below $1. In the three months following those events, XTZ has increased its value by 182%.