Coinbase Temporarily Suspends ETH Staking Rewards
Coinbase has announced a temporary halt to Ethereum (ETH) staking rewards due to a minor technical issue. The exchange confirmed on May 16 that it is working to resolve the issue within the next 48 to 72 hours.
According to the company’s statement, while payouts are paused, rewards are still accruing normally and will be distributed once the technical problem is fixed. The pause does not affect users’ staked ETH balances or the underlying staking operations.
Ethereum Staking Remains Popular on Coinbase
Coinbase’s staking program has grown in popularity because it allows users to stake ETH without meeting Ethereum’s 32 ETH minimum requirement. Currently, the platform offers around 6% annual staking rewards, making it one of the most accessible staking services for retail investors.
The company clarified that the temporary pause is purely technical and unrelated to any ongoing regulatory actions by the United States Securities and Exchange Commission (SEC). Earlier this year, the SEC fined Kraken $30 million for offering an unregistered staking program, raising industry concerns over similar enforcement actions.
Previous Issues and cbETH Integration
The pause comes shortly after users reported delays in receiving ETH rewards last week due to system limitations with external validator addresses. The issue caused frustration among community members as withdrawals were delayed or stuck in processing queues.
To enhance flexibility, Coinbase offers Coinbase Wrapped Staked ETH (cbETH), a token representing staked ETH at a 1:1 ratio. cbETH can be traded or used as collateral in DeFi platforms, allowing users to maintain liquidity even while their ETH is staked.
ETH Inflows Surge Amid Meme Coin Frenzy
Coinbase has also seen a significant rise in Ethereum inflows amid growing interest in staking and increased activity on the Ethereum network. The recent surge was partly driven by the popularity of meme tokens like PEPE, which contributed to higher gas fees and network congestion.
Validators recorded an all-time high of $46 million in staking activity in early May, signaling sustained enthusiasm for Ethereum staking despite temporary technical setbacks.
Outlook
Coinbase reassured users that the issue will be resolved promptly, and staking rewards will be distributed as usual. The exchange emphasized that its staking systems remain secure and fully operational, with no risk to users’ assets.
Once the technical glitch is fixed, Coinbase is expected to resume normal ETH staking operations, underscoring the continued strength and demand for Ethereum staking services despite short-term challenges.
