Cryptocurrency staking is an excellent way for users to earn passive income. While it may not negate market volatility, it allows users to constantly accrue more crypto without investing money. The following currencies can all prove worthwhile in that regard, although the overall approach may differ.
The Best Staking Coins
Like investing in cryptocurrencies, staking crypto requires a bit of research. Projects with a long-term vision and viability will often retain their value better than others. Users interested in staking coins must look beyond the current taking returns and focus on whether a long-term value is plausible. These currencies are all strong candidates for staking coins in 2023 and beyond.
Polkadot (DOT)
Investing in the core infrastructure propelling crypto and blockchain forward is always a sensible decision. Expectations surrounding Polkadot are high, making it one of the staking coins for 2023 to watch. The rollout of its native parachain technology will provide dedicated scaling to applications, protocols, and services, securing a parachain slot. Those slots are very limited, sparking high demand to get in on the action.
The native multi-chain and scalable technology offered by Polkadot will remain relevant for years. Users can stake solo with 40 DOT or set up a validator node for 350 DOT. Current annual returns hover near 14%, and over 51% of the supply is locked in staking. It is one of the top cryptos by market cap, making it worth adding to the staking coins for 2023 list.
Polygon (MATIC)
There are many reasons why enthusiasts may want to pay attention to polygon. The layer-2 network has proven very successful in scaling Ethereum, and it is fully compatible with protocols and dApps built on that network. Moreover, users can stake MATIC coins as a validator to earn larger rewards. As Polygon can process over 50,000 TPS with ease, it remains a go-to network for developers focused on scalability.
However, those with fewer MATIC can always delegate their stake to earn rewards. It requires a minimum of two MATIC to start staking, whereas delegation requires one. Current staking rewards sit close to 5% per annum, which is a rather appealing rate. Moreover, over 38% of the MATIC is locked in staking, further confirming the long-term popularity of Polygon as one of the staking coins in 2023.
Tezos (XTZ)
Tezos has made a name for itself in the staking industry. It is a very accessible and appealing way of staking, referred to as "baking" in this ecosystem. Like Polygon, users can stake solo or delegate their stake, depending on preference. Becoming a baker is also possible but will require more XTZ.
One thing to consider is how it will take a while for initial rewards to trickle in. Tezos' native system may take up to 40 days to show the first reward. However, new rewards trickle in every few days afterward. It requires a long-term commitment, hence the initial delay. Staking Tezos currently yields 5.37% per annum, with over 74% of the supply locked in staking and delegation.
Ardana (DANA)
Ardana has become a significant part of decentralized finance in the Cardano ecosystem. It is an all-in-one suite featuring the dUSD stablecoin, DANA token, and a native decentralized exchange. Users who stake DANA - which has a total supply of 125 million - will earn appealing rewards. Moreover, the DANA token represents the Ardana DEX with a stable-asset liquidity pool and on-chain asset-backed stablecoin protocol.
Like MATIC, staking DANA is a way to support the overarching ecosystem. As Cardano builds more momentum, its native projects will become of greater interest. Moreover, Ardana is a hub for other developers to build on, accessing stable liquidity on Cardano, and exposure to various yield-generating services for stakers.
GTON Capital (GTON)
GTON Capital is building new infrastructure to tackle Web3 scalability. With its native Rollup solution and GTON Capital Dollar stablecoin, there is much to look forward to. Additionally, the rollup is built on Ethereum but is compatible with all EVM networks. Developers can build on the rollup to achieve better scaling and throughput, establishing scaling for Layer-3/4 ideas.
On the staking side, users can stake GTON to capture the value of the overarching ecosystem and products built on GTONNet. The staking mainnet went live in February 2022. Capital contributors are eligible for special products to earn from ongoing network activity. Additionally, the GTON mainnet will go live in Q4 2022.
Ethereum (ETH)
Since Ethereum recently switched to proof-of-stake, staking became an excellent way to acquire more ETH. Like other networks, users can stake solo or opt for delegation - supported by most centralized exchanges. Moreover, users can expect annual rewards of roughly 4.8%, awarding them with a decent amount of ETH over time.
Remember that staking rewards cannot be withdrawn until the next major network upgrade, dubbed Shanghai. Unfortunately, there is no official release date for that upgrade. So far, over 12.2% of the total ETH supply has engaged in long-term staking. As Ethereum is a network that will stick around for years to come, it is a safer bet for those who prefer low-risk staking options.
Solana (SOL)
The appeal of Solana goes beyond the staking rewards. It is an efficient blockchain that focuses on scalability, which remains one of the key issues in the blockchain world. Moreover, Solana has low fees, faster transactions, and remains one of the top cryptocurrencies by market cap. Staking SOL is possible through hundreds of nodes, earning users over 6% per annum.
Moreover, one cannot deny Solana is very popular among stakes. Over 76% of the supply is locked up one way or another, which is impressive. Additionally, it is possible to stake directly from one's hardware wallet, which is also possible with several other assets on the list. Therefore, as Solana gains more momentum among NFTs and DeFi, the network will remain viable and attractive for some time.
Closing Thoughts
Staking coins are always worth investing in. These seven coins exemplify what one can expect from staking coins in 2023. Always conduct thorough research before making financial commitments. That applies to the individual coins and the staking platforms one may want to use for these or any other eligible currencies.
