Author: Tharmaraj Rajandran, Coingecko; Translated by: Tao Zhu, Jinse Finance
Which blockchain has the highest staking yield?
Cosmos (ATOM) offers the highest yield in the blockchain space, providing staking yields of up to 18.5%. The staking ratio for Cosmos is 59%, with about 248.8 million ATOM (valued at approximately $1.2 billion). These relatively high yields, combined with the network's functionalities, provide a compelling choice for stakers and are reflected in a healthy staking ratio.
Polkadot (DOT): Polkadot has a staking ratio of 56%, with a total of 853.2 million DOT (valued at approximately $3.7 billion) and a yield of up to 11.5%. The attractive staking returns provide an enticing opportunity for stakers looking to participate in the chain ecosystem.
Tezos (XTZ): Tezos is one of the earliest options available for participants on PoS chains, with a staking ratio of 68%, totaling 69.96 million XTZ (valued at approximately $47.06 million), and a staking yield of up to 10.0%. A user-friendly staking model known as 'liquid proof of stake' and its familiarity due to a longer period available for staking provide an attractive option for stakers.
Avalanche (AVAX): Avalanche has a staking ratio of 58%, with a total of 234.1 million AVAX (valued at approximately $7.2 billion), and an annual yield ranging from 7-8%. The rapid transaction speed and relatively low transaction costs of Avalanche attract an increasing number of staking communities.
Aptos (APT): Aptos is a relatively new Layer-1 blockchain with a staking rate of 78%, with a total of 855.6 million APT (valued at approximately $9 billion) and a yield of about 7.0%. Aptos has the highest staking rate among the top 50 cryptocurrencies' PoS blockchains, reflecting a high level of engagement in the Aptos ecosystem.
Solana (SOL): Solana is one of the projects with the highest staking rate, with about 67% of the total supply actively staked, totaling 393.6 million SOL (valued at approximately $65.2 billion). Given that the currently circulating SOL is only 470.1 million, this is a significant number. The average annual yield offered by Solana is 6-7%, making it attractive to investors, although past network reliability issues may pose some risks perceived by investors.
TRON (TRX): The staking yield of TRON typically ranges between 4-5%, with a staking ratio of about 48% of the total supply, which is 42.5 billion TRX (valued at approximately $6.7 billion). TRON's staking model includes a combination of staking and voting mechanisms, allowing participants to vote for super representatives who validate transactions.
Ethereum (ETH): As the largest PoS blockchain by market capitalization, Ethereum's staking yield is about 3.0%. The relatively moderate yield reflects its high level of decentralization and security, with approximately 28% of the total supply of ETH staked, totaling around 34.2 million ETH (valued at approximately $89.4 billion). Ethereum's yield is also influenced by its recent transition to PoS and the overall maturity of the network. Despite having the lowest staking ratio among the top 50 PoS blockchains, it has the highest staking dollar value, approximately 37.1% higher than its closest competitor, Solana.
Cardano (ADA): Approximately 62% of ADA is staked, totaling 22.5 billion ADA (valued at approximately $8.2 billion), with staking yields hovering around 2-3% annually. Cardano's automatic delegation process makes it user-friendly, although its yield is relatively lower compared to some peers.
Sui (SUI): Another emerging blockchain focusing on high throughput and efficient execution, Sui has a staking ratio of 77%, with a total of 7.7 billion SUI (valued at approximately $14.8 billion) and yields of up to 3%. Although the yield is relatively lower compared to other blockchains, Sui still demonstrates strong staking rates, reflecting stakers' confidence in the blockchain's development.
Hedera (HBAR): Hedera employs a consensus algorithm known as Hedera Consensus Service, which functions similarly to the Proof of Stake (PoS) algorithm, allowing stakers to earn rewards by participating in the staking mechanism. The staking ratio for HBAR is 44%, with a total of 2.22 billion HBAR (valued at approximately $1.1 billion), and the yield is about 0.19%, the lowest among the top 50 cryptocurrencies. Although the yield is relatively low, its staking rate is quite healthy.
What is cryptocurrency staking?
Cryptocurrency staking is part of the Proof of Stake (PoS) consensus algorithm, which allows blockchain participants to lock their tokens to help secure the network, validate transactions, and earn cryptocurrency as a reward. Unlike Proof of Work (PoW) consensus algorithms that reward miners for solving computational problems, PoS allows the use of the blockchain's native tokens to validate transactions.
The staking yields or returns of different blockchains vary and are influenced by various factors. The unique design of each blockchain affects rewards, with networks like Ethereum prioritizing security, while Solana focuses on speed. Additionally, the economics of the tokens, such as the method of new token generation and supply-demand dynamics, play a significant role in determining staking yields.
The staking ratio refers to the percentage of the total supply of staked tokens and can also affect rewards. A higher staking ratio indicates a greater level of participation in network security but may lead to more diluted rewards, resulting in lower returns. Overall, staking is not only a means of earning returns but is also crucial for maintaining the stability and security of PoS-based blockchains.
Conclusion
Staking in the cryptocurrency space offers compelling profit potential and an active network participation mix, with yield discrepancies across different blockchains. Factors such as staking ratios, network security, and token economics play a critical role in influencing the returns of various blockchains. While some chains like Ethereum emphasize robust stability and moderate returns, others like Cosmos offer higher yields, reflecting a diverse approach to staking design.
Top blockchains with the highest staking yields
As of October 23, 2024, the top 11 blockchains with the highest staking yields are as follows:
