Ethereum (ETH)
One of the most well-known cryptocurrencies, Ethereum (ETH), allows holders to stake their tokens and participate in the network’s security and governance. With its transition to Ethereum 2.0, staking has become possible. According to data from StakingRewards.com, staking ETH as an Ethereum validator currently offers a yearly reward rate of around 3.71%. The ‘real reward rate’ adjusted for long-term token inflation is calculated at 3.34% annually. At present, there is a total of $44.57 billion staked on Ethereum, accounting for 22.15% of ETH’s market cap.
Tezos (XTZ)
Tezos (XTZ) is a blockchain platform that utilizes a PoS consensus mechanism. XTZ holders can stake their tokens and participate in the network’s governance while earning staking rewards. Staking XTZ currently offers a yearly rate of 5.18%, but after adjusting for token inflation, the ‘real reward rate’ is 0.92%. Despite having a market cap of $644.87 million, 71.79% of that value comes from staked XTZ, totaling $476.16 million.
Cardano (ADA)
Cardano (ADA) is another popular cryptocurrency that employs a PoS consensus mechanism. ADA holders can stake their tokens in the Cardano network and participate in block validation and creation while earning rewards. Staking ADA currently provides a yearly reward rate of approximately 3%. However, when adjusted for token inflation, the expected long-term reward drops to 0.39%. The staking market cap for ADA is $6.08 billion, representing 63.32% of its total market cap.
Hot Take: The Top Cryptocurrencies for Staking
When it comes to staking cryptocurrencies, Ethereum (ETH), Tezos (XTZ), and Cardano (ADA) are among the top choices. These cryptocurrencies offer the opportunity for holders to stake their tokens and earn rewards. While Ethereum provides a reward rate of 3.71%, Tezos offers a higher rate of 5.18%. Cardano, on the other hand, has a lower reward rate at 3%. However, it’s important to consider the ‘real reward rate’ after adjusting for token inflation. Staking these cryptocurrencies allows you to actively participate in the networks’ governance and contribute to their security while earning passive income.
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