Only Three PoS Blockchains Offer Yields Above 10%

What Blockchain Has the Highest Staking Yield?

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

Polkadot (DOT): Polkadot has a staking ratio of 56%, a total volume of 853.2 million DOT (worth approximately $3.7 billion), and offers yields of up to 11.5%. The attractive staking returns offer enticing opportunities for stakers who wish to participate in the chain’s ecosystem.

Tezos (XTZ): Tezos, one of the earliest available options for participants on PoS chains, has a staking ratio of 68%, a total of 699.6 million XTZ (worth approximately $470.6 million), and staking yields of up to 10.0%. A user-friendly staking model, called Liquid Proof-of-Stake, as well as an aspect of familiarity due to the length of time it has been available for staking, offers an attractive option for stakers.

Avalanche (AVAX): Avalanche has a staking ratio of 58%, a total volume of 234.1 million AVAX (worth approximately $7.2 billion), offering annual yields between 7-8%. Avalanche’s fast transaction speeds and relatively low transaction costs have attracted a growing staking community.

Aptos (APT): Aptos, a relatively new Layer-1 blockchain, has a staking ratio of 78%, a total volume of 855.6 million APT (worth approximately $9.0 billion), with yields at approximately 7.0%. Aptos has the highest staking ratio amongst PoS blockchains in the top 50 cryptocurrencies, reflecting a high degree of participation in the Aptos ecosystem.

Solana (SOL): Solana boasts one of the highest staking ratios, with approximately 67% of its total supply actively staked, a total of 393.6 million SOL (worth approximately $65.2 billion). This is a large amount considering that only 470.1 million SOL are currently in circulation. Solana offers an average annual yield of 6-7%, making it attractive for investors, though network reliability issues in the past may pose risks that some investors consider.

TRON (TRX): TRON offers staking yields typically between 4-5%, with a staking ratio of approximately 48% of total supply, or 42.5 billion TRX (worth approximately $6.7 billion). TRON’s staking model includes a combination of staking and voting mechanisms, where participants can vote for Super Representatives who validate transactions.

Ethereum (ETH): As the largest PoS blockchain by market cap, Ethereum’s staking yield stands at around 3.0%. The relatively moderate yield reflects its high level of decentralization and security, with approximately 28% of the total ETH supply, a total of 34.2 million ETH (worth approximately $89.4 billion) currently staked. Ethereum's yield is also influenced by its recent transition to PoS and the network's overall maturity. Despite having the lowest staking ratio amongst PoS blockchains in the top 50, it has the highest dollar value staked, approximately ~37.1% higher than its closest competitor, Solana. 

Cardano (ADA): With around 62% of ADA staked, a total of 22.5 billion ADA (worth approximately $8.2 billion), the staking yield hovers around 2-3% annually. Cardano’s automated delegation process makes it user-friendly, although the yields are modest compared to some of its peers.

Sui (SUI) : Another emerging blockchain that focuses on high throughput and efficient execution, Sui has a staking ratio of 77%, a total volume of 7.7 billion SUI (worth approximately $14.8 billion), and yields of up to 3%. Despite relatively lower yields compared to other blockchains, Sui still displays a strong staking ratio, reflecting the confidence of stakers in the blockchain’s development.

Hedera (HBAR) : Hedera utilizes a consensus algorithm called the Hedera Consensus Service, which functions like a Proof-of-Stake (PoS) algorithm, allowing stakers to yield rewards by participating in the staking mechanism. HBAR has a staking ratio of 44%, a total volume of 22.2 billion HBAR (worth approximately $1.1 billion), and yields of approximately 0.19%, the lowest among the top 50 cryptocurrencies. Despite the comparatively low yield, it has shown a fairly healthy staking ratio.

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. As opposed to the Proof of Work (PoW) consensus algorithm, which rewards miners that solve computational problems, PoS allows for verification of transactions by using the blockchain’s native token.

Staking yields, or returns, vary across different blockchains and are shaped by several factors. Each blockchain's unique design influences the rewards, with networks like Ethereum prioritizing security, while Solana focuses on speed. Additionally, the economics of the token, such as how new tokens are generated and the supply and demand dynamics, play a significant role in determining the staking yields.

The staking ratio, which refers to the percentage of the total token supply being staked, also impacts the rewards. A higher staking ratio indicates greater participation in network security but may lead to more diluted rewards, resulting in lower yields. Overall, staking is not just a means to earn returns but is also vital for maintaining the stability and security of PoS-based blockchains.

Concluding Thoughts

Staking in the cryptocurrency space offers a compelling mix of earning potential and active network participation, with yields varying significantly across different blockchains. Factors such as staking ratios, network security, and token economics play crucial roles in shaping returns across a variety of blockchains. While some chains like Ethereum emphasize robust stability and moderate returns, others like Cosmos offer higher yields, reflecting diverse approaches to staking design. 

Top Blockchains With The Highest Staking Yields

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

Methodology

The study examined the staking yields and staking ratios from Proof-of-Stake (PoS) blockchains within the top 50 cryptocurrencies as of October 23, 2024. Staking ratios were derived from the total staked tokens over the total token supply of each chain’s native token. Staking yields were derived from the effective rate of rewards yielded from participating in the staking mechanism of each chain, with data taken from Staking Rewards. The top 50 cryptocurrencies were taken from CoinGecko’s front page.