Author: Tharmaraj Rajandran, Coingecko; Translated by: Tao Zhu, Jinse Finance
Which blockchain has the highest staking yield?
Cosmos (ATOM) boasts the highest yield in the blockchain space, offering up to 18.5% staking yield. Cosmos has a staking ratio of 59%, totaling approximately 248.8 million ATOM (worth about $1.2 billion). These relatively high yields, combined with the network's functionality, present a compelling choice for stakers, reflected in a healthy staking ratio.
Polkadot (DOT): Polkadot has a staking ratio of 56%, with a total of 853.2 million DOT (worth about $3.7 billion), yielding up to 11.5%. Attractive staking rewards provide enticing opportunities for stakers hoping to participate in that chain's ecosystem.
Tezos (XTZ): Tezos is one of the earliest available options for participants on a PoS chain, with a staking ratio of 68%, totaling 69.96 million XTZ (worth about $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 long-standing availability 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 (worth about $7.2 billion), and an annual yield ranging from 7-8%. Avalanche's fast transaction speeds and relatively low transaction costs have attracted 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 (worth around $9 billion), yielding approximately 7.0%. Aptos has the highest staking rate among PoS blockchains in the top 50 cryptocurrencies, reflecting a high level of engagement in the Aptos ecosystem.
Solana (SOL): Solana is one of the projects with the highest staking rates, with about 67% of its total supply actively staked, totaling 393.6 million SOL (worth about $6.52 billion). Considering that only 470.1 million SOL are currently in circulation, 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 present perceived risks for some investors.
TRON (TRX): The staking yield for TRON typically ranges from 4-5%, with a staking ratio of approximately 48% of the total supply, equating to 42.5 billion TRX (worth about $6.7 billion). TRON's staking model combines staking and voting mechanisms, allowing participants to vote for super representatives who validate transactions.
Ethereum (ETH): As the largest PoS blockchain by market cap, Ethereum's staking yield is around 3.0%. This relatively moderate yield reflects its high degree of decentralization and security, with approximately 28% of the total ETH supply currently staked, totaling 34.2 million ETH (worth about $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 rate among the top 50 PoS blockchains, it boasts the highest dollar value staked, exceeding that of its closest competitor Solana by about 37.1%.
Cardano (ADA): Approximately 62% of ADA is staked, totaling 2.25 billion ADA (worth about $8.2 billion), with staking yields hovering around 2-3% annually. Cardano's automated delegation process makes it user-friendly, though its yields are lower compared to some peers.
Sui (SUI): Another emerging blockchain focused on high throughput and efficient execution, Sui has a staking ratio of 77%, with a total of 7.7 billion SUI (worth around $1.48 billion), yielding up to 3%. Although the yield is relatively low compared to other blockchains, Sui still shows 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 a Proof of Stake (PoS) algorithm, allowing stakers to earn rewards by participating in the staking mechanism. HBAR has a staking ratio of 44%, totaling 22.2 billion HBAR (worth about $1.1 billion), with a yield of approximately 0.19%, the lowest among the top 50 cryptocurrencies. Despite the relatively low yield, its staking rate remains 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.
Different blockchains have varying staking yields or returns, influenced by multiple factors. The unique designs of each blockchain affect their rewards; networks like Ethereum prioritize security, while Solana focuses on speed. Additionally, the economics of the tokens, such as the generation of new tokens and supply-demand dynamics, play significant roles in determining staking yields.
The staking ratio refers to the percentage of the total supply of staked tokens and also affects rewards. A higher staking ratio indicates a higher level of participation in network security but may lead to more diluted rewards, resulting in lower yields. Overall, staking is not only a means to earn 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 a mix of active network participation, with significant variance in yields across different blockchains. Factors such as staking ratios, network security, and token economics play crucial roles in influencing the returns of various blockchains. While some chains like Ethereum emphasize robust stability and moderate returns, others like Cosmos provide higher yields, reflecting diverse approaches 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:
