After a long wait, Coinbase adds a Cardano staking option on its platform. The ADA price is reacting dynamically, reaching long unseen levels.
This is only the fifth coin with a staking option
Coinbase is one of the largest cryptocurrency exchanges and is particularly popular among institutional investors and so-called whales. Since April last year, it has been listed on the U.S. trading floor, which significantly increases its credibility status. In the face of powerful competition, the exchange has been betting on strong market expansion in recent months. For this reason, 168 coins and tokens are currently listed on it, while at the beginning of 2021, there were barely 60.
Coinbase is also taking part in the possibility of staking some of the available assets. Among them, only Ethereum (ETH), Cosmos (ATOM), Algorand (ALGO) and Tezos (XTZ) have been listed so far. Meanwhile, Cardano (ADA) joins this group. Recall that staking is a way to passively monetize digital assets based on the Proof of Stake algorithm. This results in freezing part (or all) of your assets in a contract, which earns you dedicated coins for processing transactions on a given network.
Coinbase senior product manager Rupmalini Sahu notes that ADA is a coin that has long been in the TOP10 crypto assets with the highest market capitalization. It has a stable and scalable ecosystem and offers extremely competitive solutions. In the face of such words, it would seem that adding Cardano to the staking options was only a matter of time.
According to available data, those who opt for such a solution on the exchange will be able to count on an annual rate of return of 3.75%. Regulated liabilities will take place over a period of five to seven days.
A decisive move by ADA
Although the ADA staking announcement on the Coinbase blog didn’t appear until March 24, leaks on the matter took place earlier. Nevertheless, since March 16, the ADA price has managed to travel more than 50% upwards in just a week. Thus, the long-term downtrend line was broken. After reaching $1.19, the coin faces a strong resistance zone, marked by the gray rectangle. The 100-day moving average (green line) has also been broken through and the struggle to hold it continues. At the same time, RSI divergence (marked in yellow) appears, as well as an upward breakout from the Bollinger Bands. These signals may point to a possible local rally top.