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Cryptocurrency News Articles
Proof-of-Stake (PoS) Analysis: Cosmos (ATOM) Offers the Highest Staking Yield Available
Oct 25, 2024 at 01:13 am
CoinGecko published a report analyzing staking yields among the largest PoS blockchain projects. The survey analyzed yields, ratios, and other functionality
CoinGecko, a leading crypto data aggregator, has published a new report on proof-of-stake (PoS) blockchains. The study looked at staking yields and ratios, as well as other metrics, and found a wide range of viable strategies.
Cosmos (ATOM), Polkadot (DOT), and Tezos (XTZ) currently offer the highest staking yields, the report found. Cosmos, in particular, has the highest yield among the largest PoS blockchain projects, with an annual percentage yield (APY) of 16.3%.
This is followed by Polkadot at 13.3% and Tezos at 6.1%. However, it is important to note that these yields can change over time, and are influenced by several factors.
“Staking yields are shaped by several factors,” the report stated. “Each blockchain’s unique design influences the rewards, with networks like Ethereum prioritizing security, while Solana focuses on speed. 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 report also looked at other aspects of PoS blockchains, such as network functionality and the ease of use of staking interfaces.
Cosmos performed well in this area, too, thanks to its high levels of decentralization and the presence of several projects building on the chain, including the first MiCA-compliant stablecoin.
Polkadot also stood out for its high yields and the parachain model, which allows other projects to integrate with Polkadot and access its security.
Tezos, meanwhile, has one of the oldest PoS staking protocols and is known for its easy frontend experience and a loyal user base, the report noted.
Other large PoS projects, such as Ethereum (ETH), Solana (SOL), Avalanche (AVAX), and Polygon (MATIC), offered lower staking yields, ranging from 4.1% to 0.9%.
However, these projects had other strengths, such as high transaction吞吐量, low fees, or a large ecosystem of decentralized applications (DApps).
Overall, the report found that there is a wide range of staking yields and strategies available in the crypto market. This allows users to choose the projects that best align with their risk tolerance and investment goals.
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