Coingecko: What are the top ten blockchains with the highest staking yields?

Which blockchain has the highest staking yield?

Cosmos (ATOM) has the highest yield among blockchains, offering a staking yield of up to 18.5%. Cosmos has a staking ratio of 59%, about 248.8 million ATOM (worth about $1.2 billion). These relatively high yields, coupled with the network's capabilities, provide a compelling option for stakers and are reflected in the healthy staking ratio.

Polkadot (DOT): Polkadot’s staking ratio is 56%, with a total of 853.2 million DOTs (worth approximately $3.7 billion), and a yield of up to 11.5%. The attractive staking returns provide an attractive opportunity for stakers who want to participate in the chain’s ecosystem.

Tezos (XTZ): Tezos is one of the oldest options available to participants on the PoS chain, with a staking ratio of 68%, totaling 699.6 million XTZ (worth approximately $470.6 million), and a staking yield of up to 10.0%. A user-friendly staking model called "liquid proof of stake" and an aspect that is familiar due to the long time it has been available for staking make it an attractive option for stakers.

Avalanche (AVAX): Avalanche has a 58% staking ratio, a total of 234.1 million AVAX (worth approximately $7.2 billion), and an annual yield of 7-8%. Avalanche's fast transaction speed and relatively low transaction costs have attracted more and more staking communities.

Aptos (APT): Aptos is a relatively new Layer-1 blockchain with a staking rate of 78%, a total of 855.6 million APTs (worth about $9 billion), and a yield of about 7.0%. Aptos has the highest staking rate among PoS blockchains in the top 50 cryptocurrencies, reflecting the high level of participation in the Aptos ecosystem.

Solana (SOL): Solana has one of the highest stake rates, with ~67% of its total supply actively staked, totaling 393.6 million SOL (valued at ~$65.2 billion). This is a large number considering there are only 470.1 million SOL in circulation. Solana offers an average annual yield of 6-7%, which makes it attractive to investors, although past issues with network reliability may present some perceived risks to some investors.

TRON (TRX): TRON’s staking yield is usually between 4-5%, and the staking ratio is about 48% of the total supply, or 42.5 billion TRX (worth about $6.7 billion). TRON’s staking model includes a combination of staking and voting mechanisms, where participants can vote for super representatives who verify transactions.

Ethereum (ETH): As the largest PoS blockchain by market cap, Ethereum offers a staking yield of approximately 3.0%. The relatively modest yield reflects its high degree of decentralization and security, with approximately 28% of the total ETH supply, and a total of 34.2 million ETH currently staked (worth approximately $89.4 billion). Ethereum's yield is also affected by its recent transition to PoS and the overall maturity of the network. Although it has the lowest staking rate among the top 50 PoS blockchains, it has the highest staked dollar value, which is approximately 37.1% higher than its closest competitor Solana.

Cardano (ADA): About 62% of all ADA is staked, totaling 22.5 billion ADA (worth about $8.2 billion), with staking yields hovering around 2-3% per year. Cardano’s automated delegation process makes it user-friendly, though its yields are lower compared to some of its peers.

Sui (SUI): Another emerging blockchain focused on high throughput and efficient execution, Sui has a staking ratio of 77%, a total of 7.7 billion SUI (worth about $14.8 billion), and a yield of 3%. Although the yield is relatively low compared to other blockchains, Sui still shows a strong staking rate, reflecting the confidence of stakers in the development of the blockchain.

Hedera (HBAR): Hedera uses a consensus algorithm called Hedera Consensus Service, which functions similarly to the Proof of Stake (PoS) algorithm, allowing stakers to earn rewards by participating in the staking mechanism. HBAR has a staking ratio of 44%, a total of 22.2 billion HBAR (worth about $1.1 billion), and a yield of about 0.19%, the lowest among the top 50 cryptocurrencies. Despite the relatively low yield, its staking ratio is quite healthy.

What is Crypto Staking?

Cryptocurrency staking is part of the foundation of the Proof of Stake (PoS) consensus algorithm, which allows blockchain participants to lock up their tokens to help secure the network, validate transactions, and earn cryptocurrency in return. Unlike the Proof of Work (PoW) consensus algorithm, which rewards miners for solving computational problems, PoS allows transactions to be validated using the blockchain’s native tokens.

Staking yields or rewards vary across blockchains and are influenced by a variety of factors. The unique design of each blockchain affects rewards, with networks like Ethereum prioritizing security and Solana focusing on speed. Additionally, the economics of the token, such as how new tokens are generated and the supply and demand dynamics, play a large role in determining staking yields.

The staking ratio refers to the percentage of the total token supply that is staked and also affects rewards. A higher staking ratio indicates a higher level of participation in network security, but may result in more diluted rewards, resulting in lower returns. Overall, staking is not only a means of earning rewards, but is also essential to maintaining the stability and security of PoS-based blockchains.

Conclusion

Staking in the cryptocurrency space offers a compelling combination of profit potential and active network participation, with yields varying widely across blockchains. Factors such as staking ratios, network security, and token economics play a crucial role in influencing returns across various blockchains. While some chains, such as Ethereum, emphasize robust stability and modest returns, others, such as Cosmos, offer higher yields, reflecting a diverse approach to staking design.

Top blockchains with the highest staking returns

As of October 23, 2024, the 11 blockchains with the highest staking yields are as follows: