Binance increased its total locked value (TVL) to $1.2 billion with an impressive 500 million inflows. After Lido Finance and Coinbase, the leading exchange is becoming one of the big players in Ether staking.
A huge increase was observed on Binance over the weekend
According to data from DefiLlama, Binance’s liquid staking Ether experienced 500 million inflows over the weekend. Blockchain data shows that 318,180 Binance ETH (WBETH) derivative tokens were created in five equal installments on Saturday and Sunday, worth a total of $502 million. These tokens flowed into a cold wallet labeled Binance 8.
These latest transactions follow a $573 million inflow earlier this month. These large sum movements caused controversy among crypto observers. Coinbase’s liquid staking derivative cbETH attracted attention with daily entries and exits. Meanwhile, inflows to WBETH have been intermittent and large.
Statement from Binance
Binance announced on social media that these transactions were part of a planned action. The exchange introduced WBETH, a new version of BETH, in April. This was a liquid staking derivative that allowed investors to use tokens to borrow and borrow on DeFi protocols other than Binance. When users lock ETH for staking through Binance, they receive a derivative token that represents them.
These developments show how Binance has become a giant player in the field of Ether staking. The dynamism in this field continues to offer significant opportunities for investors in the sector.
The difference with other exchanges is widening
These latest transactions follow a $573 million inflow earlier this month. It has sparked debate among crypto watchers about the seemingly erratic nature of the transactions. Coinbase’s liquid staking derivative, cbETH, has experienced regular inflows and outflows every day in recent weeks. Meanwhile, entries into WBETH occurred intermittently and in large chunks.
Binance explained in a social media post that the transactions are part of the exchange’s previously announced action to gradually convert the original staked Ethereum (BETH) tokens issued by the exchange into WBETH.
Hi Conor,
As Binance introduced Wrapped Beacon ETH (WBETH) on ETH Staking, The Binance ETH Staked token use cases will be shifted from BETH to WBETH.
From 2023-08-31 09:00 (UTC), BETH tokens held in the Binance wallets will be burned progressively.
The burn of BETH is…
— Binance Customer Support (@BinanceHelpDesk) September 26, 2023
In April, Binance introduced an upgraded version of BETH called WBETH, a liquid staking derivative that allows investors to use tokens to borrow and lend from DeFi protocols outside of Binance while earning staking rewards. When users lock ETH for staking through the exchange, they receive a derivative token that represents the staked assets. cryptokoin.com As we reported, Binance is currently busy with the SEC case.
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