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Produced by Daniel Aharonoff & Mogul Media AI

Binance Ends Support for BUSD Stablecoin: What It Means for Users and the Future of Stablecoins

Binance, one of the largest cryptocurrency exchanges in the world, has made the decision to end support for its Binance USD (BUSD) stablecoin. This move comes after Paxos, the company responsible for minting new BUSD coins, announced that it would be halting its operations. The transition is set to take place on December 15th, and it will have significant implications for users of the BUSD stablecoin. Automatic Conversion to First Digital USD Starting on December 31st, many users' BUSD balances on Binance will be automatically converted into First Digital USD. This conversion will take place seamlessly, and users will not be required to take any action. The transition is designed to ensure a smooth and uninterrupted experience for BUSD users. Implications for BUSD Users While the automatic conversion should minimize any disruption for BUSD users, it is important for them to be aware of the implications of this change. Once their BUSD balances are converted into First Digital US
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Produced by Daniel Aharonoff & Mogul Media AI

The Rise of Proof of Stake: Surge in Staking Rates in Q3 2023

The third quarter of 2023 has brought Proof of Stake (PoS) assets into the spotlight once again, as staking rates for the top 35 stakable assets experienced a significant surge. According to the State of Staking report by Staked at Kraken, the average stake rate for these assets reached an all-time high of 52.4% in Q3 2023, up from 49.3% in the previous quarter.

Staking, which involves actively participating in the operation of a proof of stake blockchain, plays a crucial role in creating new blocks and confirming transactions. Validators are chosen based on the number of coins they stake or lock up as collateral. This process also helps secure the network by discouraging malicious behavior, as a higher stake rate makes it more difficult for bad actors to attack the network.

The report highlights the most staked networks in the last quarter, with Aptos and SUI leading the way at 84.1% and 80.5% of the supply staked, respectively. They are followed by Mina at 77.6%, Solana at 71.9%, and Cosmos at 67.6%.

Stake rates tend to increase as holders become more familiar with the underlying protocol and are willing to use their tokens to support the network. Tim Ogilvie, Product Director and Head of Staked at Kraken, explained that if network activity remains relatively the same, an increase in stake rate can result in a reduction in the average return. This is because staking rewards need to be shared among a larger number of validators.

However, the recent increase in the average stake rate has led to a drop in the average staking yield by 0.4% from the previous quarter, with the current average yield standing at 10.2%. The report notes that this continues the downtrend that began in March 2022, when the average yield peaked at 15.4%.

It is worth noting that among the top 10 assets, only two chains offer yields higher than 7.5%: Polkadot at 15.1% and Cosmos at 18.9%. Ethereum, the second-largest cryptocurrency in the industry in terms of market capitalization, falls below this threshold.

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