Interest in both blockchains has spiked with the new milestones. ATOM surged to a new all-time high in January. To accommodate the renewed interest, Binance will expand its staking feature to support both cryptocurrencies.
On Wed Feb 10, the world’s largest cryptocurrency exchange by volume confirmed the news via a tweet. It opened the floor for users at exactly 12:00 PM UTC on the day. The new additions bring the total number of cryptocurrencies available for locked staking on Binance to 36.
Binance Locked Staking
The locked staking option will allow users to stake at least one unit of both cryptocurrencies and a maximum staking limit of 1000 ADA and 50 ATOM per user.
The staked coins cannot be traded or withdrawn during the locked period since they will be deducted from the user’s spot wallet. They can, however, be redeemed before the unlock date, albeit at a cost. Users who seek early redemption will have their received interest deducted from the principal and be refunded within three days.
Binance Staking estimates that users will receive a 21.79% annual percentage yield (APY) for ADA and an annual percentage yield of 24.79% for ATOM. Binance will pay the interest to users’ spot wallets daily.
The inclusion of ADA and ATOM comes just two days after Binance launched a new high-yield staking activity. Avalanche (AVAX) offers an estimated annual percentage yield of 32.79%. It also signals the rapid expansion of Binance Staking, which started with only eight cryptocurrencies in September 2019.
Earlier this year, the exchange partnered with IOST to bring over 800 million IOST for staking on the IOST network.