The revenue cryptocurrency users can get for staking some of the most popular digital assets has dropping significantly over the past year, with the yield earned for staking Ethereum ($ETH), for example, plunging from over 5% to around 3.18% at the time of writing.
That’s according to data from CCData shared with CryptoGlobe, which shows that this past year those staking major cryptocurrencies to earn yield on their holdings have seen that yield diminish significantly. Those staking Cardano (ADA), for example, saw yields drop from 3.35% in May 2023 to 3.07% as of May 16, 2024.
Polkadot (DOT), a cryptocurrency often referred to as the blockchain of blockchains, saw staking yields plunge from little over 22% to 18.64% – the largest total decline among the cryptocurrencies tracked – while Avalanche (AVAX) saw yields drop from 7.05% in May 2023 to 6.42% at the time of writing.
The staking yield that has seemingly managed to remain stable was that of Ethereum rival Solana (SOL), moving from around 7.5% in May 2023 to nearly 7.7% at the time of writing.
Staking, it’s worth noting, is a way for cryptocurrency holders to participate in a network’s Proof-of-Stake consensus mechanism and earn rewards while doing so. Staked tokens are often locked while earning rewards, although there are various liquid staking services that allow token holders to receive a liquid derivative token when locking their tokens to stake.
Some staking services – such as those often offered by centralized cryptocurrency exchanges – may incur fees on the staking earnings in exchange for the service, effectively reducing the yields stakers receive through these platforms.
Staking yields dropped over the past year, while the cryptocurrency market added over $1 trillion amid significantly rally that saw the price of Bitcoin reach a new all-time high above $73,500 before enduring a correction and now trade at $65,200.
Featured image via Unsplash.
