Coinbase, a cryptocurrency exchange, has enabled <a href="https://www.cryptoknowmics.com/news/solana-unveils-new-web3-focused-android-smartphone-saga/" target="_blank" rel="noopener">Solana</a> (SOL) staking rewards, allowing platform users to earn incentives for just holding the coin and keeping it staked in the network. Coinbase <a href="https://blog.coinbase.com/coinbase-expands-staking-offerings-to-include-solana-fa5bec35edbd" target="_blank" rel="nofollow noopener">announced</a> the change and stated that it would progressively roll out the capability to all its users.

With rewards dispersed every three to four days, the company will offer an estimated 3.85 percent annual percentage yield (APY) on SOL staked in the Solana network. In contrast, Coinbase now provides 3.675 percent APY on Ethereum staking to its users. Yield rates, however, are variable and heavily influenced by shifts in the overall number of tokens staking on a particular network.

https://twitter.com/coinbase/status/1542240615097720833

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<h2>Competing Exchanges Offer Solana Staking</h2>
Other competing exchanges like <a href="https://www.cryptoknowmics.com/news/binance-partners-with-khaby-lame-to-drive-web3-adoption/" target="_blank" rel="noopener">Binance</a> and FTX and self-custody wallets like Phantom have long offered Solana staking. The Solana network provides the staking reward splits between Coinbase and the participating users, with a 25% cut going to Coinbase. Users can withdraw their staked SOL coins from Coinbase at any time with no lock-up requirement, but to be eligible for staking rewards, they must possess at least $1 worth of SOL.

The staking process allows cryptocurrency owners to temporarily lock up their coins or tokens in a blockchain network in exchange for yield benefits, similar to interest. Solana and other proof-of-stake networks like <a href="https://www.cryptoknowmics.com/news/acala-to-launch-enterprise-grade-polkadot-liquid-staking-solution/" target="_blank" rel="noopener">Polkadot</a> (DOT) and <a href="https://www.cryptoknowmics.com/news/cardano-vasil-hardfork-expected-to-take-place-in-july-end/" target="_blank" rel="noopener">Cardano</a> (ADA) provide such rewards.

Coinbase: Staking Rewards Benefits for Solana Holders with High Returns

With rewards dispersed every three to four days, Coinbase will offer a 3.85% annual percentage yield (APY) on SOL staked in the Solana network.

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

Coinbase: Staking Rewards Benefits for Solana Holders with High Returns

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