In brief:
- Binance has launched the long-awaited staking of BNB on the trading platform.
- The DeFi staking of BNB will commence today, August 20th, at 1 pm (UTC).
- 7-day and 30-day products will be available and participants stand the chance to earn 25% APY on their BNB.
- The BNB staked will be used to participate in Kava’s CDP.
The crypto exchange of Binance has announced that it will be launching BNB staking on the trading platform. The staking of Binance Coin (BNB) on the platform will commence today, August 20th at 1pm (UTC). Additionally, it will be via 7-day and 30-day products and participants will earn up to 25% APR on their BNB.
#Binance Adds #BNB DeFi Staking, Stake $BNB on Binance With Annualized Earnings of up to 25%
— Binance (@binance) August 20, 2020
BNB Staked Will Be used to Participate in Kava’s CDP
Furthermore, the BNB staked on the Binance platform will be used to participate in Kava’s CDP. To note is that the KAVA platform went through a successful crowdfunding on the Binance Launchpad back in October of 2019. At the time of writing, a total value of $36.17 Million in Binance Coin (BNB) is currently locked in the Kava DeFi platform.
Potential Impact of BNB Staking on the Price of Both Assets
As a result of Binance announcing BNB staking, Binance Coin has experienced a positive spike in value from around $22.50 to $23.30. With investors earning up to 25% APY by staking Binance Coin via Binance, the demand to buy and lock BNB will have a continual positive impact on the value of Binance Coin.
As well, the digital asset of Kava (KAVA) stands to benefit from the introduction of BNB staking via the platform. At the time of writing, KAVA is yet to experience a positive spike in value due to the announcement of BNB staking.
However, it can be loosely concluded that as investors get wind of the potential of the Kava project in the DeFi arean, demand to own KAVA will increase and so shall its price in the long term.
As with all analyses of altcoins such as Binance Coin (BNB) and Kava (KAVA), traders and investors are advised to use adequate stop losses and low leverage when trading them on the various derivatives platforms.