As a seasoned crypto investor with several years of experience under my belt, I’ve seen the ups and downs of the market firsthand. The past year has been particularly challenging for those of us staking our digital assets to earn yield on our holdings. According to data from CCData shared with CryptoGlobe, the revenue we can get for staking some of the most popular cryptocurrencies has dropped significantly.
Over the past year, the earnings from staking popular cryptocurrencies, including Ethereum ($ETH), have experienced a substantial decrease. For instance, the return on investment for staking Ethereum has dropped drastically from over 5% to approximately 3.18%.
Based on information obtained from CCData and reported by CryptoGlobe, it appears that the returns generated from staking various cryptocurrencies during the past year have noticeably decreased. For instance, those who stake Cardano (ADA) experienced a decline in yields, which dropped from 3.35% in May 2023 to 3.07% as of May 16, 2024.
In simpler terms, Polkadot (DOT) and Avalanche (AVAX), two popular cryptocurrencies, experienced significant decreases in staking rewards. Polkadot’s yields dropped dramatically from around 22% to approximately 18.64%, marking the most substantial decline among the monitored currencies. Meanwhile, Avalanche’s yields fell from 7.05% in May 2023 to 6.42% as of the current update.
The yield on staking Ethereum rival Solana (SOL) has remarkably held steady, rising from approximately 7.5% in May 2023 to almost 7.7% currently.
Cryptocurrency owners have the opportunity to engage in a network’s Proof-of-Stake consensus process through a method called staking. By doing so, they can earn rewards. It’s important to mention that during this process, tokens are typically kept frozen. However, there are alternatives like liquid staking services, which enable token holders to receive a fungible representation of their staked tokens while keeping them unlocked.
As a researcher studying the world of cryptocurrency staking, I’ve come across various staking services, many of which are provided by centralized exchanges. One important aspect to consider when choosing a staking service is the fees associated with earning staking rewards. While these fees may seem insignificant at first glance, they can significantly impact the overall yield you receive as a staker through these platforms. In simpler terms, you’ll be giving a portion of your earnings back to the exchange for their service, effectively reducing the total amount you earn from staking.
As a crypto investor, I’ve noticed a decrease in staking yields over the past year, despite the cryptocurrency market experiencing a tremendous surge adding over one trillion dollars in value. This growth was fueled by an impressive rally that pushed Bitcoin‘s price to a new all-time high of around $73,500 before undergoing a correction and currently trading at approximately $65,200.
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2024-05-17 03:55