Staking is an excellent technique to generate passive income from your Bitcoin investments. It’s also a means to aid the network and safeguard the blockchain. If you are interested in staking cryptocurrencies, we recommend that you conduct your own study and select a network that you are familiar with. This article is all about the top 10 crypto assets by staking market cap. Let’s take a look at it in more detail.
What is Crypto Staking?
| Rank | Coin | Market Cap | APY |
| 1 | Cardano (ADA) | $16.6 billion | 5.0% |
| 2 | Ethereum | $14.7 billion | 4.5% |
| 3 | Solana (SOL) | $10.7 billion | 6.0% |
| 4 | Polkadot (DOT) | $10.3 billion | 12.0% |
| 5 | Avalanche (AVAX) | $9.5 billion | 9.0% |
| 6 | Terra (LUNA) | $8.9 billion | 7.0% |
| 7 | Cosmos (ATOM) | $8.4 billion | 9.0% |
| 8 | Algorand (ALGO) | $6.7 billion | 5.0% |
| 9 | Tezos (XTZ) | $5.2 billion | 5.5% |
| 10 | Polygon (MATIC) | $4.8 billion | 8.0% |
Staking is the practice of locking up your coin to participate in transaction validation on a blockchain network. You are awarded more tokens in exchange for staking your coin.
Here are some more factors to consider while staking cryptocurrency:
- Staking is a long-term investing strategy. You should not stake bitcoin that you will require soon.
- Staking involves some risk. There is always the potential that the Bitcoin you are staking will lose value.
- Not all exchanges support staking. You’ll need to discover an exchange that allows you to stake the coin you wish to stake.
Please keep in mind that these yields are subject to change and may not be indicative of the actual yields you will get. Before staking any cryptocurrency, you should conduct your own study.
Top 10 Crypto Assets by Staking Market Cap
The coins mentioned in this post are all proof-of-stake (PoS) networks, which implies that staking is used to validate transactions and secure the network. The staking benefits for each cryptocurrency differ based on the network and the quantity staked.
However, on your staked bitcoin, you can normally anticipate making between 4% and 12% APY. Staking is an excellent technique to generate passive income from your Bitcoin investments. It’s also a means to aid the network and safeguard the blockchain.
There are a few steps you need to take if you want to stake cryptocurrencies. First, you must select a PoS network. After you’ve decided on a network, you’ll need to select a wallet that allows staking. Finally, you must acquire the cryptocurrency that you intend to stake.
After you’ve completed these steps, you may begin staking your Bitcoin. Staking is often a straightforward operation that may be completed in a few clicks.
Here are the top 10 crypto assets by staking market capitalization as of May 20, 2023:
1. Cardano (ADA)
Cardano is a third-generation blockchain platform developed in 2017 by Charles Hoskinson, one of Ethereum’s co-founders. Cardano employs the Ouroboros proof-of-stake consensus process, which is intended to be more energy-efficient and scalable than proof-of-work consensus systems.
Cardano’s native cryptocurrency is ADA. It may be used to pay transaction fees on the Cardano network, as well as staked for rewards. The current ADA staking return is roughly 5%.
Cardano is a popular staking coin since it is a well-established project with a competent team. It is also a low-risk investment because the value of ADA has been relatively constant in recent years.
2. Ethereum (ETH)
By market capitalization, Ethereum is the second-largest cryptocurrency. It is a decentralized platform that executes smart contracts, which are apps that function exactly as planned with no room for fraud or third-party interference.
Ethereum’s native coin is ETH. It may be used to pay for Ethereum network transaction fees and can also be staked to gain rewards. The current ETH staking yield is roughly 4.5%.
Because it is a well-established project with a big user base, Ethereum is a popular candidate for staking. It is also a low-risk investment because the value of ETH has been relatively constant in recent years.
3. Solana (SOL)
Solana, created in 2017, is a high-performance blockchain platform. It is well-known for its fast transaction times and inexpensive costs.
Solana’s native cryptocurrency is SOL. It may be used to pay Solana network transaction costs and can also be staked to win prizes. SOL’s current staking return is roughly 6%.
Solana is a popular staking option since it is a rapidly expanding project with a lot of promise. It is also a low-risk investment because the value of SOL has been quite consistent in recent years.
4. Polkadot (DOT)
Polkadot is a multi-chain network developed in 2016 by Gavin Wood, who was also one of Ethereum’s co-founders. Polkadot allows multiple blockchains to connect, which might assist to address the coin interoperability problem.
Polkadot’s native coin is DOT. It may be staked to gain rewards and used to pay transaction fees on the Polkadot network. DOT’s current staking return is roughly 12%.
Polkadot is a popular staking project since it is well-established and has a solid crew behind it. It is also a low-risk investment because the value of DOT has been relatively consistent in recent years.
5. Avalanche (AVAX)
Avalanche is a 2018 scalable blockchain platform. It is well-known for its fast transaction times and inexpensive costs.
AVAX is Avalanche’s native cryptocurrency. It may be used to pay Avalanche network transaction fees and can also be staked to receive rewards. AVAX’s current staking return is roughly 9%.
Because it is a fast-growing enterprise with a lot of promise, Avalanche is a popular pick for staking. It is also a low-risk investment because the value of AVAX has been reasonably constant in recent years.
6. Terra (LUNA)
Terra is a blockchain platform launched in 2018. It is well-known for its stablecoins, which are cryptocurrencies tied to a fiat currency like the US dollar.
Terra’s native cryptocurrency is LUNA. It may be used to pay for Terra network transaction costs and can also be staked to receive rewards. LUNA’s current staking yield is roughly 7%.
Terra is a popular staking option since it is a well-established project with a huge user base. It is also a low-risk investment because the value of LUNA has been relatively constant in recent years.
7. Cosmos (ATOM)
Cosmos is a decentralized blockchain network that was launched in 2014. It is well-known for its interoperability, which enables various blockchains to connect.
Cosmos’ native cryptocurrency is ATOM. It may be used to pay transaction fees on the Cosmos network, as well as staked for rewards. ATOM’s current staking return is roughly 9%.
Cosmos is a popular staking project since it is well-established and has a solid team behind it. It is also a low-risk investment because the value of ATOM has been reasonably consistent in recent years.
8. Algorand (ALGO)
Algorand is a blockchain platform developed in 2017 by Turing Award winner Silvio Micali. Algorand is well-known for its scalability, speed, and security.
ALGO is Algorand’s native cryptocurrency. It may be staked to gain rewards and used to pay transaction fees on the Algorand network. ALGO’s current staking yield is roughly 5%.
Algorand is a popular staking project since it is well-established and has a strong team behind it. It is also a low-risk investment because the value of ALGO has been reasonably consistent in recent years.
9. Tezos (XTZ)
Tezos is a blockchain platform launched in 2014. It is well-known for its self-amending protocol, which enables network upgrades without requiring a hard fork.
Tezos’ native coin is XTZ. It may be used to pay Tezos network transaction fees and can also be staked to win rewards. The current XTZ staking yield is roughly 5.5%.
Tezos is a popular staking project since it is well-established and has a strong team behind it. It is also a low-risk investment because the value of XTZ has been reasonably constant in recent years.
10. Polygon (MATIC)
Polygon is an Ethereum layer-2 scaling solution. It enables Ethereum developers to create scalable, secure apps without leaving the Ethereum environment.
Polygon’s native cryptocurrency is MATIC. It may be staked to gain prizes and used to pay transaction fees on the Polygon network. MATIC’s current staking return is roughly 8%.
Polygon is a popular staking option since it is a rapidly expanding enterprise with a lot of promise. It is also a low-risk investment because the value of MATIC has been reasonably consistent in recent years.
Conclusion
If you are thinking of staking cryptocurrency, you should conduct your own study and understand the risksinvolved. Here are some factors to think about while staking cryptocurrency:
- The coin you wish to stake
- Staking rewards provided by the network
- The network’s security
- The hazards associated with staking
Staking is an excellent alternative if you want to make passive income from your Bitcoin holdings. However, before you begin staking, you should conduct your own study and understand the risks involved.
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Source: https://cryptoticker.io/en/top-10-crypto-assets-by-staking-market-cap/