MetaMask Launches Ethereum Staking Service, There’s a Catch

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As an analyst with a background in blockchain technology and experience in cryptocurrency markets, I’m excited about MetaMask’s new pooled staking service for Ethereum. This innovative approach to staking opens up the platform to a wider audience by allowing users to stake any amount of their choice, which is a significant improvement from the previous high threshold.

MetaMask, created by Consensys, now offers a new Ethereum staking service called “pooled staging.” With this feature, users can stake any desired amount of Ether (ETH) and participate in the Ethereum network’s validation process.

Currently, due to certain limitations, the service is not accessible for individuals residing in the United States and the United Kingdom.

MetaMask Launches Ethereum Staking Service

MetaMask’s pooled staking feature represents a fresh approach to engaging with Ethereum’s staking processes. Previously, individuals needed a minimum of 32 Ether (approximately $113,000) to stake directly with Consensys-operated validators. This substantial requirement excluded numerous potential participants from sharing in the advantages and responsibilities of securing the blockchain.

As a crypto investor, I’m excited about the new service that employs the Ethereum liquid staking solution StakeWise. This protocol, which is built on an open modular architecture, grants me the flexibility to stake any amount of my preferred Ether tokens. This feature is particularly appealing since it broadens the accessibility of the platform for a larger user base. As per Matthieu Saint Olive, the Senior Product Manager at Consensys, this design choice is instrumental in making DeFi more inclusive and democratic.

“Through Pooled Staking with MetaMask, Ethereum users can now effortlessly stake their ETH in reliable validator groups, overseeing their ETH assets and collecting rewards, all while contributing to the security of the Ethereum network.”

Users in the U.S. and the UK Excluded

As a MetaHash analyst, I can explain that when we first introduced our staking service, we chose not to make it available to users in the United States and the United Kingdom. The reason for this was the ongoing regulatory shifts in those countries, which presented significant challenges for us in ensuring compliance.

Consensys intends to introduce pooled staking in these markets once the legal circumstances become more definitive.

So far, MetaMask’s collective staking relies on over 33,000 Ethereum validators that have been deployed in various multi-cloud, multi-region, and multi-client setups, with a total of more than one million ETH at stake. According to Consensys, approximately 99.9% of these validators are currently active, and none of them have incurred any penalties or slashing yet.

Bitcoin Support on the Horizon for MetaMask

In alignment with previous reports from Coingape, MetaMask announced its plans to incorporate Bitcoin (BTC) into its wallet, marking the first non-Ethereum blockchain addition. This forthcoming feature aims to bridge the gap between Bitcoin and Ethereum ecosystems, allowing users to manage both cryptocurrencies through a unified interface. The implementation is projected to be rolled out within the upcoming month, with further details about the integration still under wraps.

As a researcher studying the latest developments in the crypto world, I’m excited to share that MetaMask’s recent addition of Bitcoin integration comes at an opportune time. With advancements in Bitcoin’s protocol, enabling NFT-like features and smart contracts, this upgrade aligns perfectly with the ongoing trend of various systems merging and expanding their capabilities within the cryptocurrency landscape.

During this period, Ethereum’s (ETH) price bounced back following the release of favorable U.S. CPI inflation figures. At present, ETH is being bought and sold at a price of $3,635, representing a 3.50% increase from its lowest point of $3,434 in today’s session.

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2024-06-12 18:30