Investors flock to cryptocurrency staking with $100bn staked in major assets
Data acquired and calculated by Finbold indicates that the value of the top ten staked cryptocurrencies stands at $99.2bn as of April 20, 2021.
Cardano (ADA) leads the pack at 73.27% of eligible staked tokens with a value of $27.35bn. Polkadot (DOT) ranks second with 64.18% of eligible tokens staked at a value of $23.9bn. The two tokens account for over half of the top ten staked value at about 51%.
Solana (SOL), with 62.82% of eligible tokens staked, has a value of $9.71bn, followed by Ethereum 2.0 (ETH) ‘s 3.31% staked tokens valued at $8.21bn. Avalanche (AVAX) ranks fifth with 78.03% of staked tokens with a value of $7.64bn.
Algorand (ALGO) with 52.26% of staked tokens with a value of $6.85bn, followed by USD Coin (USDC) at $4.32bn. Terra (LUNA), whose staked tokens account for 32.73%, valued at $4.19bn, while Binance Smart Chain (BNB) has a value of $4.10bn 63.67% of the staked tokens. In the tenth spot, Tezos (XTZ) has 78.17%, valued at $3.66bn.
Investors flocking staking to diversify crypto returns
As the cryptocurrency sector grows, most investors are now considering taking a means of earning passive income. The report explains possible reasons why most people are flocking to the staking sector.
According to the research report: “The process is a quite easy, consistent, and relatively low-risk way of earning using digital assets. The lure of earning passive income over time attracts more investors. Besides providing a steady means of earning income, cryptocurrency staking strengthens the ecosystem by creating demand and taking tokens out of circulating supply.”
However, cryptocurrency staking comes with several risks, including price volatility.