The yield of cryptocurrency staking has sharply declined

The yield of cryptocurrency staking has sharply declined

user avatar

by Eve Adams

2 years ago

According to CCData, cryptocurrency staking yields have significantly decreased over the past year. From May 2023 to May 2024, staking yields for the following crypto assets declined by:

  1. Ethereum (ETH) - 36.4%
  2. Cardano (ADA) - 8.36%
  3. Polkadot (DOT) - 15.27%
  4. Avalanche (AVAX) - 8.94%

Staking Yields Over Time

Main Reasons and Consequences

The decline in yields is due to the reduction in the number of coins allocated for validator rewards, aimed at preventing a significant increase in circulating supply and combating inflation. The rewards will continue to decrease until they match the total transaction fees collected.

Solana Breaks the Trend

Interestingly, Solana deviated from this trend, with its staking yield increasing from 7.5% to 7.7%. However, according to Staking Rewards, the actual staking yield for Solana is 7.48% APY, and the sole provider of liquid staking for SOL, Marinade Finance, pays only 6.54% annually.

These changes in staking yields highlight important trends in supply management and inflation control, significantly impacting market participants.

Tier I

Sector: #18291

Sealed Cache Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, caches will be stored in your inventory and can be opened with Keys.

Other news

Traders Predict Early Release of OpenAI's GPT-6 Model

chest

Prediction market traders are optimistic about the early release of OpenAI's GPT-6 model, estimating a 59% chance of launch by September 15.

user avatarTando Nkube

Visa Seeks New Crypto Stablecoin Partner for Global Settlements

chest

Visa is seeking a new crypto stablecoin partner to enhance its global settlement capabilities after the acquisition of its previous partner, BVNK, by Mastercard.

user avatarKofi Adjeman

AMD's Gaming Division Struggles Amid AI Market Concerns

chest

AMD's gaming division faces challenges with a 31% revenue dip, raising concerns about its ability to protect stock value amid potential AI market fluctuations.

user avatarSatoshi Nakamura

Michael Burry Warns of Potential AI Bubble Burst

chest

Michael Burry warns of a potential AI bubble burst that could lead to significant losses in tech stocks, particularly for companies like AMD.

user avatarNguyen Van Long

Nike Stock Hits 12-Year Low Amid Rebound Speculation

chest

Nike's stock closed at a 12-year low of $39.09, raising concerns about its future performance and potential for a rebound.

user avatarJesper Sørensen

Payward Joins Project Glasswing to Boost Cybersecurity Efforts

chest

Payward, the parent company of Kraken, has joined Anthropics Project Glasswing to enhance cybersecurity by utilizing Claude Mythos 5 for identifying security vulnerabilities.

user avatarRajesh Kumar

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.