- A sudden inflow of $500 million over the weekend boosted Binance’s liquid staking ether to a total locked value (TVL) of $1.2 billion.
- The inflow comes as part of Binance’s strategic shift from BETH to WBETH, facilitating wider DeFi engagements for its users.
In the ever-evolving decentralized finance (DeFi) domain, a sudden influx of staked assets can significantly alter the competitive landscape. Binance, a behemoth in the cryptocurrency arena, has witnessed a substantial surge in its liquid staking ether, with a sudden inflow of $500 million over the recent weekend. This infusion propelled its total value locked (TVL) to a commendable $1.2 billion, marking a new milestone in its journey within the Ethereum staking ecosystem.
Transition to WBETH: A Strategic Move
The latest data reveals the minting of 318,180 wrapped Binance ETH (WBETH) derivative tokens over the Saturday and Sunday, aggregated into five, nearly equal tranches of $100 million each. These freshly minted tokens found their abode in a crypto address earmarked as “Binance 8,” a designated cold wallet reserved for safeguarding users’ assets.
This sudden infusion of funds follows a previous inflow of $573 million earlier this month. The intermittent and sizable nature of these inflows contrasts sharply with the daily regular inflows and outflows observed with Coinbase’s liquid staking derivative, cbETH.
This novel activity aligns with Binance’s strategic intent unveiled in a social media disclosure. The exchange is in the process of transitioning from the original Binance-issued staked ether (BETH) tokens to WBETH, a liquid staking derivative. This shift is engineered to unlock wider DeFi engagements for its stakeholders.
Introduced in April, WBETH is a revamped version of BETH, designed to empower investors to employ their tokens for borrowing and lending across DeFi protocols outside Binance’s purview, while still reaping staking rewards. When users commit their ETH for staking via Binance, they are reciprocated with a derivative token mirroring their staked assets.
In a concerted effort to bolster the new token and curtail activity with the old one, Binance divulged several measures a month ago, which included a “progressive” incineration of BETH tokens held in Binance wallets. The blockchain data echoes this narrative, showcasing a burn of 330,000 BETH, mirroring the amount of WBETH minted over the weekend.
This tactic maintains the equilibrium of the overall amount of staked assets through the exchange, while seamlessly transitioning to a more liquid, DeFi-compatible staking model. With a robust 1.2 million ETH staked, Binance solidifies its position in Ethereum’s staking network, trailing only Lido Finance and Coinbase, thus signifying its burgeoning influence in the sphere.