Crypto: Solana Staking Yields 200% Annual Rewards
After coming perilously close to the worst during the crypto exchange FTX’s fall, Solana has skyrocketed in the charts. Staking the Solana (SOL) cryptocurrency, which is now one of the top-performing cryptos of 2023, has generated over 200% in profits throughout the year. A performance that completely outshines that of its competitor, Ethereum.
Solana Soars to Become the 2nd Largest Crypto by Market Cap
In the cryptocurrency staking market, Solana (SOL) is currently experiencing a significant turnaround. The cryptocurrency now holds the second spot in terms of market capitalization. As of October 24, 2023, the total value locked in the Solana protocol stands at 400.05 million SOL tokens, equivalent to 12.72 billion SOL tokens.
What’s even more fascinating is the reward generated by staking Solana. According to StakingRewards.com, the network has distributed over $905 million in rewards this year, resulting in an annual reward rate of +7.08%. Even though Ethereum’s staking has only generated a 3.47% reward rate, these performances underscore the power of staking, making it an area worth exploring further.
69% Surge in SOL Staking in the Last 24 Hours: Is Ethereum Losing Ground?
It’s important to note that the +7.08% staking reward rate of SOL has been dampened by inflation. The generous rewards distributed have contributed to an increase in the circulating token supply, impacting the price of SOL, which has seen depreciation.
In the end, even with the +7.08% reward rate, the adjusted real reward rate considering inflation stands at -0.29%. In contrast, Ethereum staking, for example, with a +3.47% reward rate, has an adjusted real reward rate of +3%.
As a result, Solana’s staking might have produced one of the worst real reward rates in the market for large-cap cryptocurrencies. However, this is not a direct comparison between Ethereum and Solana. Fundamentally, it’s the concept of staking that is winning.
Furthermore, inflation has not diminished the enthusiasm for SOL staking. According to the latest data, SOL staking has witnessed a nearly 69% increase in the last 24 hours. Moreover, more than 70% of the cryptocurrency’s market capitalization has been staked across nearly 772,980 crypto wallets.
Hopefully, France’s attempts to regulate DeFi and rumors of Solana network’s secret centralization won’t derail the progress observed so far.
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Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.