The Decline in Proof-of-Stake Assets
A recent report from Staked, a non-custodial staking platform owned by Kraken, reveals that the market capitalization of the top proof-of-stake assets has decreased by 7% to $254 billion in the most recent quarter. Alongside this decline, the value of staked assets has increased by 3% to $74 billion, while the annualized staking rewards have dropped by 7% to $4.1 billion. The average PoS staking yield has also experienced a 4% decrease from the previous quarter, now standing at 10.2%. Overall, the share of PoS in the total cryptocurrency market capitalization has decreased by 2% to 22%.
Moving Forward from Rock Bottom
Staked’s report suggests that although the metrics for this quarter may seem discouraging, they indicate progress towards overcoming the market’s rock bottom. According to Staked, crypto markets experienced a downward trend during this period due to a lack of immediate catalysts, regulatory uncertainty, and macro challenges. However, on a year-by-year basis (excluding stablecoins), crypto assets have seen an increase of 10-40%, demonstrating that despite ongoing bearish conditions, the market is gradually recovering.
Hot Take: Signs of Recovery Amidst Challenges
Despite facing various obstacles such as regulatory uncertainties and macro challenges, the cryptocurrency market is showing signs of recovery. Staked’s report highlights a decline in proof-of-stake assets but also emphasizes an increase in staked assets’ value. Although staking rewards have slightly decreased and the overall share of PoS in the market capitalization has dropped, these figures indicate progress towards moving away from rock bottom. The report suggests that even though near-term catalysts are lacking, the market’s year-by-year growth indicates a positive trajectory. This resilience and upward trend demonstrate the potential for future market improvements amidst ongoing challenges.
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