The Best Cryptocurrencies for Staking
Hey readers👩💻,
Earlier on, we gave you an introduction to Staking and Crypto dividend as well as the importance of diversification when staking your cryptocurrencies. Today, we’d like to discuss the top ten cryptocurrencies for staking in 2020. So, let’s get to it.
Digital Asset staking has become highly popular since the introduction of Proof of Stake blockchains. One of the reasons for this success is the opportunity to earn passive income. However, with thousands of different stakeable assets to choose from, looking for the best ones might be a troublesome task. Fear not, as below, we’ve listed the top seven cryptocurrencies in the market that you should be staking.
📌 The Concept of Staking
With Proof of Stake blockchains, holders can stake their digital assets to help validate new transactions and secure the blockchain network. In compensation for locking up their tokens and securing the network, token holders earn a yield on their assets. It is possible to stake with user-friendly wallets and interfaces such as Ledger, Magnum, or Trust Wallet. The details of how the staking process and rewards work are different for each blockchain network.
🏆 Top Seven Cryptocurrencies for Staking
For this article, we compared the following aspects: market capitalization, total staked in the network, risk rating, and staking yield.
The first and most significant indicator we selected for this list is the market capitalization. Next, total staked tokens are the amount of staked digital assets within a PoS blockchain; it shows the confidence of the different market stakeholders in a particular network. The risk rating relates to the expected risk regarding the market value stability of the specific cryptocurrency. And lastly, staking yield refers to the annual percentage rate that participants get rewarded. Both these aspects are an estimate, calculated by Staking Rewards. Please note that these data are evolving and are as per 18 March 2020.
- 💻 Tezos
First on this list is Tezos, this platform is a multi-purpose smart contract platform for decentralized applications that features a self-amending protocol via on-chain governance. The platform came in first on this list because of the market capitalization of $936,430,318, moderate risk and the staking yield of 6.32% annually. Tezos blockchain consensus is achieved by Liquid Proof of Stake.
- Market capitalization: $936,430,318
- Total staked in the network:
- Staking ratio — 78%
- Total staked tokens — 54,337,979
- Total staked in $USD — $900,918,604
- Risk rating: moderate
- Staking yield: 6.32% annually (if baking yourself).
2. 🌌 Cosmos
The market capitalization required amount of votes and the expert level required, leave the Cosmos ecosystem in the second place of this list. Furthermore, the risk of the Cosmos token is high; it’s staking yield attractive at 9.07% a year. Cosmos presents itself as the Internet of Blockchains; the ecosystem is made up out of scalable, independent blockchains that can interoperate with each other. The consensus in the Cosmos blockchain ecosystem is achieved through Tendermint.
- Market capitalization: $320,723,158
- Total staked in the network:
- Staking ratio — 71%
- Total staked tokens — 179,081,819
- Total staked in $USD — $311,318,223
- Risk rating: high risk
- Staking yield: 9.07%
3. 🧑🚀 ICON
The relatively new decentralized ICON Network scores the third place on the list for its high staking yield (16.57% annually) as well as it’s accessibility and stability. The ICON blockchain consensus is achieved via Loop Fault Tolerance. You can participate by creating blocks or voting. The ICON Networks aim to redefine the meaning of communities, and in doing so, introduce an era of decentralization.
- Market capitalization: $90,844,476
- Total staked in the network:
- Staking ratio — 28.45%
- Total staked tokens — 235,269,785
- Total staked in $USD — $94,283,391
- Risk rating: stable
- Staking yield: 16.57%
4. 🧑💻 Algorand
The main aim of the Algorand project is to create a borderless economy that is inclusive and transparent to build prosperity everywhere. On this list, Algorand came out as fourth because of its easy accessibility and high staking yield. Making it a secure coin to get started with. The Algorand blockchain consensus is via Proof of Stake.
The project aims to address the blockchain trilemma, the trade-off between security, decentralization, and scalability. What makes Algorand unique is that the protocol allows developers to generate new tokens and execute atomic transfers without the use of smart contracts.
- Market capitalization: $87,582,954
- Total staked in the network:
- Staking ratio — 67.75%
- Total staked tokens — 2,159,484,976
- Total staked in $USD — $86,890,550
- Risk rating: moderate.
- Staking yield: 5.48%
5. 🧐 Waves
The Waves platform is selected as fifth for its stable value and staking yield of 6.09%. It is an open-source distributed network to usher Web 3.0 applications by offering a customizable decentralized solution that enables users to have complete control of their data and privacy. The Waves platform achieves consensus via Leased Proof of Stake; it is possible for investors to stake or lease tokens.
- Market capitalization: $81,969,117
- Total staked in the network:
- Staking ratio — 54.05%
- Total staked tokens — 54,980,732
- Total staked in $USD — $73,831,953
- Risk rating: stable
- Staking yield: 6.09% annually
6. 🔗 Synthetix Network Token
As sixth on this list is the Synthetix Network Token (SNX). A very easily accessible, high staking yield token, 46.95% annually, with a moderate level of risk attached. This decentralized platform aims to create synthetic assets that are collateralized by the SNX. The types of assets that can be converted to SNX include fiat currencies, commodities, cryptocurrencies, and inverse currencies. On this platform, a consensus is achieved via the Ethereum Blockchain.
- Market capitalization: $78,560,502
- Total staked in the network:
- Staking ratio — 82%
- Total staked tokens — 149,768,506
- Total staked in $USD — $41,416,783
- Risk rating: moderate
- Staking yield: 46.95%
7. 🧑💻 KAVA
Kava finds itself at the seventh place on this list, mostly because of its lower market capitalization as well as high requirement level for entry and the high risk of the token. If you’re willing to take a higher risk, however, and you’ve figured out how to stake, your staking yield will be 10.28% per year. Kava is a Defi platform for crypto-assets, developed by Cosmos. And like Cosmos, Kava blockchain consensus is also achieved via Tendermind.
- Market capitalization: $7,917,923
- Total staked in the network:
- Staking ratio — 86.05%
- Total staked tokens — 87,760,567
- Total staked in $USD — $6,508,334
- Risk rating: high risk
- Staking yield: 10.28%
More Information & Sources
- Staking rewards
- Algorand
- Synthetix Network Token
- Tezos
- Cosmos Network
- Waves Platform
- KAVA
- ICON Network
- Coinmarket
DISCLAIMER: This is not financial advice. Staking, delegation, and cryptocurrencies involve a high degree of risk, and there is always the possibility of loss, including the failure of all staked digital assets. Additionally, delegators are at risk of slashing in case of security or liveness faults on some protocols. We advise you to do your due diligence before choosing a validator.
