Why Staking Crypto such as TRX, KAVA and more is Gathering Steam

In brief:

  • The Coronavirus crash of mid-March has resulted in a lot of crypto traders being cautious. 
  • The dominance of stablecoins is proof that they are waiting for favorable crypto conditions to get back to trading. 
  • Staking crypto on the various exchanges has provided an alternative to trading and/or storing value in stablecoins. 

The Bitcoin (BTC) and crypto market crash of mid-March was one event that not too many traders believed would happen. The majority of Bitcoin enthusiasts believed that the hype surrounding the Bitcoin halving event would provide much-needed immunity for the crypto markets to survive a shake-out in the event of a possible stock market meltdown. However, the tense days of March proved that Bitcoin is highly correlated to the stock markets during times of turmoil.

$8 Billion Locked up in Stablecoins

As with all periods of unexpected volatility, traders and investors quickly hopped on stablecoins to safeguard the value of their holdings in the crypto markets. As a result, Tether (USDT) has continually risen on Coinmarketcap and is currently ranked 4th after BTC, Ethereum (ETH) and XRP. The stablecoin’s market cap currently stands at $6.4 Billion making up 80% of the total value stored in stablecoins. Tether’s dominance has slowly but surely risen due to the uncertainty brought about by the effects of COVID19 on the global economies.

Staking of TRX, KAVA and other Cryptos is Providing a Profitable Alternative

With the world firmly in the thick of a global recession, favorable trading conditions to go LONG in the crypto markets will probably take a while to present themselves. At the time of writing this, flattening the curve of infections is happening but a return to normalcy has been projected to take months and roll over into 2021 with some estimates pushing it to 2022.

Therefore, many savvy crypto investors have discovered that staking is an easier way of storing their crypto holdings while gradually increasing their bags.

Exchanges such as Binance, Bitfinex, KuCoin and Poloniex, have started offering staking services for coins and tokens already listed on their platforms.

Using Binance staking services as an example, we observe the following estimated annualized returns in the staked token/coin.

  • Tron (TRX): 7 – 8% pa
  • ATOM: 6 – 9% pa
  • Tezos (XTZ): 6 – 9% pa
  • Algorand (ALGO): 8 – 10% pa
  • ONE: 8- 10% pa
  • Fetch (FET): 8 – 12% pa
  • QTUM: 6 – 8% pa
  • TROY: 15 – 16% pa

The above list is just a brief one to give the reader a better understanding of the potential investment potential of staking.

Staking Might be a Better Alternative to Trading the Uncertainty

With the Bitcoin halving narrative of gains almost destroyed by the Coronavirus crash of March 2020, trading cryptocurrencies as they range and wick haphazardly in either direction might be one-way traders are losing trading capital through stop losses and the dreaded liquidations.

Staking, on the other hand, might be a better alternative to trading. User funds idly generate profits in a manner more attractive than holding value through stablecoins.

Vitalik Buterin Believes Staking on Phones is Promising

Additionally, in a recent tweet, the Co-founder of Ethereum, Vitalik Buterin, rubbished the idea of mining cryptocurrencies on smart-phones while at the same time identifying staking as a promising option. His tweet can be found below.

Summing it Up

Trading Bitcoin and alt-coins during periods of global economic uncertainty might be one way of losing trading capital. Alternatively, and with staking, investors can store the value of their trading capital in coins or tokens that will generate a handsome amount in annualized returns.

(Feature image courtesy of Micah Williams on Unsplash.)

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

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Justin Sun Baffled By a Jump in New Tron (TRX) Accounts

In brief:

  • On the 19th of April, the Tron network recorded its highest daily increase in new accounts.
  • This feat was noticed by a senior Tron Community member.
  • Justin Sun was baffled by the sudden increase.
  • However, it could be due to the Just (JST) token scale next month and the allure of staking TRX.

The Tron (TRX) network has continued to run smoothly since its mainnet was launched in mid-2018. Additionally, the number of total accounts on the network has reached a staggering 5.353 Million at the time of writing this.

Tron Records Highest Daily Increase in New Accounts

In a tweet a few hours ago, Tron community member @MishaLederman, notified the crypto community that the TRX network had experienced its largest daily increment in new accounts on the 19th of April. The tweet went on to give the following stats regarding the achievement.

The #Tron blockchain recorded its highest daily increase of new accounts yesterday, April 19: 65,226 new $TRX accounts (+1,2% daily increase in relation to all 5.3M #TRX accounts) It’s also 61% higher than the previous daily record of 40,386 from Feb 28, 2019.

Justin Sun Baffled at the Increase in New Tron Accounts

In response to the tweet by @MishaLederman, Justin Sun expressed his surprise regarding the achievement. He further stated that he had no idea as to why crypto enthusiasts suddenly decided to start using Tron. His tweet can be found below.

2 Reasons: Staking and the Just (JST) Token Sale

However, there are two plausible reasons why the network has experienced a sudden spike in new accounts.

Firstly, and as pointed out in an earlier analysis, staking Tron (TRX) has continually become a profitable endeavor in the current uncertain times. Average returns are between 7 – 8% per year which is very appealing for anyone who wants to avoid trading the current crypto market environment.

Secondly, the Just (JST) token sale takes place on the Poloniex exchange on the 5th of May. The exchange will only accept TRX as the method of participation. This means any willing participant will have to open an account with Poloniex and purchase or deposit TRX if they want to reap the benefits of the IEO.


The Tron (TRX) network continues to grow as witnessed with the historic daily increment in new accounts pointed out by Mr. Lederman. As a result, Justin Sun expressed his surprise at the sudden increment in new users. However, two logical reasons come to mind. Users want to utilize staking on the Tron network as well as participate in the Just (JST) IEO that takes place on Poloniex. Additionally, it could also be a Tron DApp that has suddenly become popular. Only time will provide evidence of the latter theory.

(Feature image courtesy of Jungwoo Hong  on Unsplash.)

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

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