Binance has launched a new token called Wrapped Beacon ETH (WBETH) to give users more flexibility when it comes to using their staked ETH in DeFi protocols.
The exchange announced on April 24 that it had rebranded its ETH 2.0 Staking to ETH Staking and had introduced the WBETH on its ETH Staking service.
Each WBETH token represents 1 BETH and stakers can use the token to participate in DeFi projects outside of Binance, but can also accrue staking rewards.
The WBETH service began operations on April 27 at 08:00 UTC, and users can wrap their BETH into the new tokens. The exchange states that the initial conversion rate is 1:1, though it is subject to change. It also expects that the value of BETH will increase over time “in accordance with the daily APR on ETH Staking.”
Liquid staking of ETH is as strong as ever, with Lido dominating the niche currently. It holds 74.2% of the total share, with over 6.1 million ETH staked. Coinbase’s liquid ETH staking follows with about 1.1 million staked ETH, which amounts to 13.84% of the market share.
Liquid staking has been one of the hottest trends in Q1 2023, with a CoinGecko report showing that it had the highest growth in the quarter. It has played a critical role in pushing the DeFi market up this year.
After the Shapella upgrade was rolled, Ethereum saw over 572,000 ETH staked in a week – a record influx. The staked ETH largely came from institutional staking service providers.
Deposits of ETH are continuing to grow while withdrawals are falling, which is a positive sign for Ethereum and bodes well as it prepares for its next major upgrades.
Binance’s introduction of WBETH is expected to create more options in the Ethereum liquid staking market. Currently, only Ethereum and BNB Smart Chain are supported, but the exchange states that more networks will be supported in the future.
The launch of WBETH allows users to do a lot more with staked ETH while also being able to receive rewards, which is expected to boost participation in DeFi projects.
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