Top 10 Best Crypto Coins to Stake in 2025

Many low-market capitalization cryptocurrencies often advertise excessively high APY rates, which can be misleading. To boost token sales, crypto projects without strong financial backing frequently offer high-APY staking during presales to attract investors. This go-to-market strategy incentivizes newly launched coin staking, reducing its circulating supply, which can lower inflationary pressure. In theory, this reduced supply could enhance the long-term value of the token, but it also carries significant risk, especially if the project lacks a solid foundation or a sustainable economic model. Reduced token supply might increase its long-term value, but it also comes with significant risk, particularly if the project lacks a strong foundation or a sustainable economic model.

In this article, we've conducted thorough research to strike the right balance between risk and reward. We’ve focused on reliable, well-established coins that not only offer high yields but also prioritize security, liquidity, and long-term stability. 

In the following sections, we delve into how staking works, identify the best staking coins for maximum passive income, and highlight key factors, including staking mechanisms, lockup periods, risks involved, and potential rewards. 

Understanding how staking works is essential because it’s the most common way of earning additional rewards while HODL. Whether you're new to crypto staking or looking to refine your strategy, this guide will help you make informed decisions based on thorough market analysis.

Types of Crypto Staking

It's important to have a clear understanding of the various staking options available on the crypto market to maximize returns. Whether you're looking for the highest APY or a stable staking option, familiarizing yourself with the various mechanisms, including liquid staking and custodial staking, can help you make informed decisions. Before delving into the best crypto to stake, let's first define the various types of staking and break down the primary risks associated with each method available.

1. Native Staking

Native staking involves locking crypto directly on a PoS blockchain, such as the Ethereum network. This complex process relies on validators to generate new blocks and validate transactions. Native staking involves a specific lock-up period of staked coins, during which validators cannot access or use their assets. The advantage of native staking is the absence of counterpart risk since no third-party services are involved, while the disadvantage is the high entry costs. 

Native staking requires stakers to delegate tokens to a validator or run their own node:

• Delegation: Users can delegate their tokens to a trusted validator, who will handle the rest of the staking process. After unstaking delegators will receive a share of the staking rewards.
• Running a Validator Node: Users can run a validator node if they have enough technical expertise and required hardware Active validators need to be online, and vote in a correct way to avoid staking penalties.

Example: Ethereum solo staking, by running a validator node, requires the user to have at least 32 ETH to become a validator.

Native Staking Pros and Cons

2. Liquid (Re)Staking

Liquid staking provides users the flexibility to earn rewards and maintain liquidity while staking crypto. Users stake their assets in a proof-of-stake blockchain and receive Liquid Staking Tokens (LSTs) in return, a tokenized representation of the staked assets. LSTs can be traded, transferred, or used in other DeFi protocols to generate additional yield.

Liquid restaking enables users to reinvest their LSTs to support the operations of other protocols and decentralized networks. This process allows staked tokens to secure multiple networks simultaneously, thereby maximizing yields.

In essence, liquid staking ensures that staked assets are not locked up and can be used elsewhere. Liquid restaking leverages these assets, thus maximizing the potential yield from the staked crypto.

Example: The Lido platform on Ethereum issues $stETH, a liquid staking token that represents staked ETH while still providing liquidity. Platforms like EigenLayer enable liquid restaking, allowing liquid staking tokens (LSTs) such as $stETH to secure multiple networks simultaneously, maximizing yield potential. For instance, $stETH can be used across DeFi applications, traded, or utilized as collateral, further increasing the total value locked (TVL) on the Ethereum blockchain and enhancing its ecosystem while still generating yield for its holder on $ETH staked.

Liquid (Re)Staking Pros and Cons

3. Custodial Staking 

Custodial staking involves staking on centralized exchanges or other third-party platforms. Crypto staking on CEX offers a simple way for registered users to participate in staking without the need for technical knowledge. Users delegate their tokens to the service provider, who then handles the entire staking process. In this scenario, staked tokens may not be directly utilized to secure the network and, instead, might be used for internal business operations. While this method involves minimal effort, it often comes with additional fees and risks, such as a loss of control over assets.

Example: Large centralized exchanges like Binance or Coinbase offer custodial staking services where they manage the entire staking process.

Custodial Staking Pros and Cons

What type of staking is the best?

Most users choose between traditional CEX staking and liquid staking. Custodial staking is great for conservative investors and newcomers. Liquid staking is a great option for the crypto community because of its flexibility and absence of locked-up periods, allowing participants to stake their crypto assets and receive a tokenized representation of staked assets (LSTs). Liquid restaking also allows users to earn additional yield from staking received LSTs across different DeFi applications and protocols, thereby expanding the ecosystem of PoS blockchains.

The Best Staking Cryptocurrency of 2025

If you want to enhance returns, staking crypto presents one of the most effective ways to maximize gains while holding to your assets. In our quest to find the best staking coins for maximum passive income, we delved into blockchain performance, protocol fundamentals, staking net flow, rewards rate, and more to bring you a complete perspective. This article explores the 10 best staking coins of 2025, including $ETH, $SOL, and $NEAR, which offer high APYs and flexible staking mechanisms for passive income generation. If you're looking for a secure way to stake crypto, we’ve got you covered with a selection of the best crypto staking platforms that offer moderate risk and reliable returns.

*Exact staking return depends on many factors, including the number of participants, and cannot be guaranteed

Stablecoin Staking ($USDe & $sUSDe)

Ethena USDe is a fully-backed, on-chain stablecoin issued and managed by Ethena Labs. USDe's peg stability is supported through the protocol immediately hedging the delta of protocol backing assets. It’s designed to solve the stablecoin trilemma - maintaining decentralization, scalability, and price stability. $USDe is backed 1:1 by Ethereum Liquid Staking Tokens (LSTs), such as $stETH, while hedging ETH price risk through perpetual futures contracts, creating a delta-neutral position. This innovative setup not only provides price stability but also generates yield, making $USDe a high-yielding stablecoin often referred to as "the internet bond." Users can mint and redeem $USDe by depositing LSTs, ETH, or USD, and it can be traded in permissionless liquidity pools. 

60.9% of the total $USDe supply, which amounts to 5.459 billion tokens, is currently staked.

Source: Dune Analytics

How to Stake USDe on Ethena

To stake $USDe on Ethena, users should first convert their stablecoins into $USDe. Once the conversion is complete, they can then transfer their $USDe tokens to the Staked $USDe smart contract to begin earning rewards.  This can be done via the Ethena dApp or directly interacting with the contract. In exchange for their $USDe stake, users receive $sUSDe, another ERC-20 token representing staked $USDe tokens. This means that instead of receiving new tokens, rewards are reflected in the growth of the value of $sUSDe. Upon unstaking, users will receive more $USDe than they originally staked due to the growing value of $sUSDe over time. There’s no minimum staking period, and users can unstake at any time, receiving their original $USDE plus accrued rewards based on the total pool size.

What is sUSDE?

$sUSDe is the staked version of $USDe, which is provided to users when they stake their $USDe tokens on Ethena. It reflects the user’s proportionate share in the staking pool, including rewards. As more rewards are added to the pool, the value of $sUSDe increases. When unstaking, the $sUSDE tokens are burned in exchange for the equivalent amount of $USDe and accumulated rewards.

According to Dune Analytics, the Total Value Locked (TVL) in the $sUSDE is currently above $3.325 billion, which exceeded the TVL of $DAI starting from June 1, 2024. Launched in 2017, $DAI is DAO Maker’s established crypto-collateralized stablecoin, backed by collateralized debt denominated in ether.

How to Receive sUSDE

To receive $sUSDe, users need to stake $USDE via the StakedUSDe smart contract. This can be done through the Ethena dApp or by direct interaction with the smart contract. Once users stake their $USDe tokens, they will automatically receive $sUSDE tokens in return, which can be held or leveraged by participation in various DeFi activities in other dApps.

The $USDe and $sUSDe OFT contracts are available and supported on such LRT protocols as:

• Karak
• Swell
• Morpho
• Mantle (Merchant Moe, Init Capital, IntentX)
• Arbitrum (Camelot)
• Zircuit
• Injective (Mito)

These protocols can integrate Ethena permissionlessly. 

Staking Rewards (APY/APR) for USDE and sUSDE

Staking rewards for $USDE and $sUSDE are derived from two main sources:

1. Ethereum Staking Yield: Currently around 4-5%, depending on network conditions. This yield comes from the staked Ethereum backing $USDE.
2. Perpetual Futures Funding Rates and Basis Spread: Additional yield is generated by the protocol’s delta-neutral hedging strategy on perpetual futures markets. This yield can vary daily based on market conditions and the futures spread.
3. Source: Ethena Docs

The current APY for $sUSDe stands at 4%, while the Ethena protocol boasts a TVL of $6.21 billion. However, it's important to note that the APR has seen significant fluctuations. At its peak, the APR reached an impressive 37%. This yield is closely tied to the open interest in ETH short positions. Presently, the open interest in ETH shorts is low, leading to a lower APR. However, during market growth phases, the demand for short ETH positions typically rises, which can drive the $sUSDe APR significantly higher, reflecting the market's conditions.

Staking USD-pegged stablecoins is considered one of the safest methods to earn passive income. Staking $USDe, in particular, is highly secure as it offers predictable and substantial rewards. The inherent stability of $USDE, combined with its strong collateralization, high liquidity, and consistent returns, makes it an attractive option for risk-averse investors. These factors collectively position $USDe as the best crypto for staking. This stablecoin staking solution provides a reliable way to generate passive income with minimal exposure to the risk associated with LSTs.

Ethereum ($ETH) Staking

Ethereum is the second-largest cryptocurrency after Bitcoin, pioneering the label “altcoin,” the first alternative to the famous Satoshi Nakamoto coin. Ethereum is a decentralized, open-source blockchain network powered by the ETH token. Ethereum’s development was released in several main stages. The blockchain has undergone several successful upgrades aimed at improving its scalability and sustainability, resulting in increased network efficiency. On September 15, 2022, Ethereum transitioned its consensus mechanism from PoW to PoS in an upgrade process originally referred to as Ethereum 2.0, “The Merge”. 

According to DeFiLlama, the Total Value Locked in the Ethereum blockchain exceeds $47 billion, making it the blockchain with the largest TVL. After ETH 2.0 Upgrade, staking on Ethereum matured and gained popularity. A gradually growing number of staked $ETH and validators point to increased adoption of the staking mechanism. Currently, Dune analytics reports almost 34 million $ETH deposited and more than 1 million validators recorded on-chain.

Here's how ETH staking works and its benefits:

• Mechanism: Users lock up a certain amount of $ETH to participate in the PoS blockchain consensus mechanism. By staking their Ether, validators help to secure the network and process transactions.
• Withdrawal and Liquidity: The Shanghai upgrade on April 12, 2023, gave the ability for validators to withdraw Ether that had been staked since as long ago as December 2020 and redeem rewards. The addition of such a feature was crucial for enhancing the staking paradigm by offering liquidity options for stakers. 
• Rewards: Stakers earn rewards in the form of additional ETH. The estimated yield on staking can range from 1% to 15%, influenced by several factors including the total amount of $ETH staked, the number of active validators, network usage, transaction fees, and maximal extractable value (MEV). High participation generally lowers rewards, while periods of high network congestion can increase returns through higher transaction fees and tips.

ETH staked by staking type

According to Dune Analytics, most users opt for liquid staking or staking on CEX when staking their ETH. In this article, we have outlined the advantages and disadvantages of both liquid and custodial staking. Now, let’s define the best crypto staking platform for each of these staking types.

Custodial Ethereum Smart Staking on WhiteBit

WhiteBit offers a custodial Ethereum staking service, providing a straightforward and convenient way for users to participate in staking. Through custodial staking, users delegate their ETH to the platform, which handles the entire staking process on their behalf. Instead of staking directly on the Ethereum network, WhiteBit uses the delegated tokens for internal operations, offering competitive interest rates in return. 

WhiteBit Smart Staking, allows users to earn rewards by lending their cryptocurrency to the exchange through various available plans. This product offers a simple way for users to grow their crypto holdings by locking in their assets for a chosen period, ranging from 10 days to 1 year. This flexible approach makes it easy to select a plan that fits individual financial goals, whether short-term or long-term. 

WhiteBit Earn offers attractive fixable APYs for staking. For example, the current APY for Ethereum custodial staking with a 1-year lock-in period is an impressive 17.39%. 

How ETH Staking on WhiteBit Works

All Ethereum tokens (or other assets) used in Smart Staking are moved from your Main balance at the start of the staking plan and returned to it once the plan term ends. These funds are utilized to support the exchange’s cash flow during the lock-up period. WhiteBIT ensures full transparency in the assets management, giving users confidence in how their crypto is being utilized while earning rewards.

Is WhiteBit Smart Staking safe?

According to the Hacken.io audit, WhiteBIT meets the highest security requirements and is among the top three most reliable exchanges.

• Keep 96% of assets on cold wallets.
• Resist hacking attacks with WAF.
• Comply with the standards of the Financial Action Task Force (FATF)
• Check assets with the AML system.

However, it’s important to consider the potential risks involved in custodial staking. Users should be aware that in order to stake on Whitebit they need to transfer their assets to WhiteBit’s wallet. By doing this they entrust Whitebit to keep and manage their crypto holdings, which introduces some degree of risk. Despite these drawbacks, Smart Staking on WhiteBit provides an efficient and accessible way for users to earn rewards, particularly for those looking for the highest APY crypto staking.

ETH Staking on Binance Earn ($WBETH)

Binance Earn offers a secure option for Ethereum staking. With almost $140 billion in reserve and more than $14 billion in trading volume, Binance still holds the №1 spot as the biggest centralized exchange. 

This is also reflected in the WBETH significant TVL, which currently stands at $3.83 billion, reaching a peak of $7 billion on January 7, 2025.

Source: DefiLlama

$WBETH is available on Ethereum and Binance Smart Chain, with a $3.468 billion TVL in the Ethereum pool and a $360.86 million TVL in the BSC pool.

To start earning yield on Ethereum holdings, Binance registered users with a minimal amount of 0.0001 ETH can stake their Ether and receive Wrapped Beacon ETH ($WBETH) in return. $WBETH represents staked ETH plus the staking reward received in a tradable and transferable form. 

How WBETH Staking Works

Current exchange rate: 1 $ETH ≈ 0.95 $WBETH

When staking 1 $ETH, you receive less than 1 $WBETH because WBETH has a higher value. Upon redemption, users get back their initial $ETH and earned rewards. Users can redeem $WBETH for $ETH based on the WBETH:ETH conversion ratio at redemption. The process of redemption may take up to 6 days to complete.

Rewards start to accrue the next day after staking. The $ETH staking APR is dynamic, following the on-chain Ethereum staking rewards, which fluctuate due to various factors, including on-chain activities and consensus rewards, etc. A 10% commission fee on the reward is charged to ensure the product is sustainable.

$WBETH use cases 

Users can earn yield by simply holding $WBETH or using received $WBETH for a variety of use cases. For example, users can restake their $WBETH on liquid restaking protocols like EigenLayer, earning additional rewards by utilizing staked $ETH across a wide range of dApps. Moreover, $WBETH will still be entitled to staking rewards even when it is used in other Binance products or external DeFi applications.

ETH Staking on Coinbase ($cbETH)

Launched on August 24, 2022, Coinbase Wrapped Staked ETH (cbETH) is a token that represents ETH staked via Coinbase. According to the cbETH whitepaper, “Coinbase is supporting liquid staking for its ETH stakers with Coinbase Wrapped Staked ETH (cbETH), where the staked asset is Ether (ETH), and the staking provider and token issuer is Coinbase.”

Coinbase is the largest CEX by far in terms of staking participants, with over 2.7 million worth of ETH staked, representing 34.04% of the market share of the total ETH staked via centralized exchanges.

Source: Dune Analytics

This expansion was possible with $cbETH being available for users across different networks, enhancing its accessibility and utility in various dApps. Users can bridge and utilize $cbETH, the Coinbase exchange's liquid token equivalent of staked Ethereum, across the following blockchains:

• Ethereum
• Optimism
• Base
• Arbitrum One
• Polygon POS

cbETH TVL stands at $255.7 million, and all of the value is locked in a single Ethereum pool.

Source: DefiLlama

How cbETH Staking Works

When users stake ETH through Coinbase, they receive cbETH in return. Users can transfer their $cbETH to personal non-custodial wallets and use it outside of the Coinbase platform. This provides flexibility and enables trading, transferring, or utilizing $cbETH across various DeFi platforms and dApps. This makes cbETH ideal for users who want to participate in on-chain activities while their ETH remains locked in staking. There are no lock-up, unbonding periods, or minimum deposit requirements when staking with Coinbase. Typical hold time is 1 day. More information can be found on the official Coinbase wrapped ETH page.

$cbETH Key Technological Aspects

$cbETH is an ERC-20 token designed using the cToken model, a structure pioneered by Compound Finance. This model tracks the underlying staked ETH, accounting for factors such as staking rewards, penalties, fees, and staking/unstaking activity. As a result, cbETH’s value is not pegged directly to ETH but changes based on network conditions. This flexible conversion model lets users move between ETH and cbETH (once unwrapping is available), reflecting the rewards accrued during staking.

• Conversion rates: The amount of cbETH users receive when wrapping ETH is determined by the ETH-to-cbETH conversion rate. $cbETH conversion rate indexed based on the staked ETH backing each individual cbETH unit, rather than being tied to the total supply of wrapped staked ETH. This means rewards are specifically linked to the ETH supporting a single cbETH unit. 
• Price: cbETH reflects the value of staked ETH plus any accrued rewards. However, its price may deviate from ETH on various exchanges, sometimes trading at a discount compared to the underlying ETH.
• Fees: There are no fees associated with wrapping or unwrapping cbETH. Coinbase staking fees still apply to the underlying staked ETH.

$cbETH use cases 

• DEX cbETH trading: Unlike traditionally locked staked ETH on CEX, $cbETH can be sold or moved off-platform.
• Collateral in supported DeFi protocols: As a liquid staking derivative, cbETH can be deposited as collateral, allowing users to earn yields while keeping their staked ETH rewards.
• Transferring cbETH: Users can send $cbETH to external wallets, trade it on DEX, or even lend it on lending platforms, increasing its versatility. This allows them to maintain staking rewards while accessing liquidity.

cbETH's use cases demonstrate its versatility within DeFi, leveraging the standard process of generating yield.

$cbETH Risks

Coinbase acknowledges that cbETH staking involves risks, often associated with liquid staking.

1. Slashing Risk: Violating network rules may result in a portion of staked ETH being slashed, reducing the overall balance held by cbETH holders.
2. Smart Contract Security Risk: Vulnerabilities in smart contracts could be exploited, but measures have been taken to mitigate this risk. 
3. Blockchain Technical Risk: Upgrades to Ethereum could impact cbETH if flaws are present. 
4. Custodial Risk: Compromised keys could lead to a loss of underlying ETH, directly affecting cbETH holders. 
5. cbETH Price Risk: Market conditions determine cbETH's price, and limited arbitrage opportunities could lead to deviations from the value of underlying staked ETH.

This combination of security, staking rewards, and DeFi compatibility makes cbETH a versatile asset for users looking to maximize their returns while maintaining liquidity with their staked ETH.

PKOIN: Best Native Staking Crypto of 2025

Bastyon is a decentralized social video platform & mini-app marketplace powered by $PKOIN.

Pocketcoin ($PKOIN) powers Bastyon, a decentralized social and video platform that seamlessly integrates chat, mini-apps, and a growing digital economy. $PKOIN staking on Bastyon functions as a native PoS consensus mechanism that operates directly on the Bastyon blockchain without requiring third-party staking services. $PKOIN maintained over 40% staking returns, solidifying its position as one of the best staking crypto of 2025. 

Key advantages of $PKOIN Staking on Bastyon: 

✅ Blockchain-Level Staking: PKOIN staking is integrated into the Bastyon blockchain and doesn’t rely on external validators.
✅ Supports Network Security: Staked PKOIN helps secure the network and maintain decentralization.
✅ No Third-Party Custody: Users stake directly through Bastyon without needing a centralized platform.
✅ On-Chain Rewards: Staking rewards (42.17% APY) come from the decentralized social network rather than a DeFi pool or lending system.

Where Does $PKOIN Come From?

$PKOIN, also known as Pocketcoin, is the native cryptocurrency of Pocketnet, a blockchain-based social network that eliminates centralized control over user content and interactions. $PKOIN is generated through a proof-of-stake (PoS) consensus mechanism, rewarding participants who secure the network and contribute to its ecosystem. Additionally, users earn $PKOIN by creating high-quality content, engaging in discussions, and actively participating in Bastyon's community.

What Is the Role of $PKOIN in the Future of Bastyon?

$PKOIN plays a crucial role in the long-term growth and sustainability of Bastyon by serving as the primary medium for transactions, incentivization, and governance. Unlike traditional social platforms that monetize user data through advertisements, Bastyon empowers content creators with direct monetization options. The built-in marketplace allows users to sell ads directly, set their own prices, and choose the types of advertisements they wish to feature, whether they are mass-produced or custom placements. This system eliminates the need for third-party ad networks, giving creators greater financial independence and control.

Beyond advertising, the utility of $PKOIN extends to decentralized peer-to-peer payments. This includes one-click transactions within Bastyon’s encrypted chat feature, which is similar to Telegram or WhatsApp but utilizes blockchain security. 

Developers also benefit from Bastyon’s growing ecosystem, as they can quickly deploy mini-apps using a straightforward SDK, allowing them to instantly access a user base of over 1.6 million people.

Key Factors That Make PKOIN a Top Staking Choice:

✅ Proof-of-Stake Utility Token: PKOIN is a deflationary currency used for advertising payments and barter transactions within Bastyon.

✅ High Staking Returns: In 2025, PKOIN offers an annual staking return of 42.17%, one of the most lucrative in the industry.

✅ Bastyon’s Explosive Growth: As a decentralized video and social platform, Bastyon boasts over 1.6 million monthly users, surpassing the majority of crypto projects in user engagement.

Easy Node Staking – Passive Income With PKOIN:

For investors looking to earn passive income, PKOIN staking presents a rewarding opportunity. Staking PKOIN involves locking up assets in a node to earn rewards while securing the network. Bastyon makes this process simple: anyone with 50GB of SSD space and a stable internet connection can run a Bastyon node and earn $PKOIN through staking.

Want to start staking $PKOIN? Check out the step-by-step staking guide on Bastyon’s official site.

ETH Liquid Staking on Frax Finance ($frxETH & $sfrxETH)

Frax Finance provides a liquid ETH staking derivative and stablecoin system, simplifying and optimizing the Ethereum staking process to maximize yield. The Frax Ether system consists of three primary components: Frax Ether ($frxETH), Staked Frax Ether ($sfrxETH), and the Frax ETH Minter.

Frax Ether system explanation

1. frxETH: ETH-pegged stablecoin, similar in function to Wrapped Ether ($WETH). 

1 $frxETH: 1 $ETH, as the amount of $frxETH in circulation matches the amount of ETH in the Frax ETH system. When ETH is sent to the frxETHMinter, an equivalent amount of $frxETH is minted. Although $frxETH itself does not earn staking rewards, it plays a critical role in maintaining liquidity across the Frax Finance ecosystem. Additionally, it serves as the gas token on the Fraxtal L2 chain.

1. sfrxETH: represents staked frxETH that accrues staking rewards. 

This token represents staked $frxETH and is designed to accrue staking rewards over time. Users can exchange $frxETH for $sfrxETH by depositing it into the sfrxETH ERC-4626 vault, allowing them to earn staking yields. As Frax ETH validators accrue staking rewards, an equivalent amount of $frxETH is minted and added to the vault. Over time, the exchange rate of $frxETH per $sfrxETH increases as rewards are introduced, meaning holders of $sfrxETH can redeem their tokens for a greater amount of $frxETH than they originally deposited.

1. Frax ETH Minter: the mechanism through which users can mint frxETH by depositing ETH into the Frax ecosystem.

Frax ETH Minter expands Ethereum usability across the Frax Finance ecosystem by spinning up validator nodes when possible, with new frxETH minted in equal proportion to the ETH deposited. More information can be found in the Frax Finance documentation.

Frax Ether ($frxETH) Liquid Staking

Frax Ether is a liquid ETH staking derivative designed to leverage the Frax Finance ecosystem to maximize staking yield and streamline the Ethereum staking process. 

Frax Ether system offers a simplified, secure, and DeFi-native way to earn interest on ETH through liquid staking, abstracting away the complexities of traditional solo ETH staking. Users can stake any amount of ETH, earn rewards without managing nodes, withdraw at any time, and use their tokens across various DeFi applications, ensuring greater flexibility and composability in the ecosystem. This is displayed in the frxETH TVL.

Source: DefiLlama

How ETH Staking on Frax Finance Works:

1. Staking Process:
   • Users swap their ETH for $frxETH using the Frax ETH Minter.
   • Additionally, $frxETH can be staked in a vault to receive $sfrxETH, which earns staking rewards.
   • Staking allows users to earn ETH issuance rewards without locking up the underlying ETH, maintaining its liquidity.
2. Withdrawal Process:
   • When users unstake their tokens, they need to convert $sfrxETH back to $frxETH in order to receive the original ETH plus any staking rewards accrued.
3. Use Cases:
   • Liquidity Pools: $frxETH can be used within liquidity pools such as the frxETH-ETH Curve Pool to earn additional yields.
   • DeFi Integrations: $sfrxETH and $frxETH can be used in various DeFi protocols for lending and borrowing.

Frax Finance Ethereum Staking APR

Frax Facts compares returns from ETH liquid staking on different platforms. 

This data suggests that over one year: 

• $sfrxETH returned +11.08% compared to $stETH.
• $sfrxETH returned +26.72% compared to $rETH.

Frax Finance Staking provides superior flexibility and liquidity compared to traditional staking methods. Through its dual-token system, it delivers a liquid staking solution, combining the stability of $frxETH with the reward-earning potential of $sfrxETH. This makes Frax Finance staking a versatile option for both liquidity provisioning and earning staking rewards. Moreover, ETH liquid staking on Frax’s platform has delivered superior returns compared to other LSTs.

ETH Liquid ReStaking on Renzo ($ezETH)

Renzo Protocol, launched in December 2023, operates within the EigenLayer ecosystem as a Liquid Restaking Token (LRT) platform and Strategy Manager, simplifying interactions between users and node operators. The protocol allows users to stake their ETH or liquid staking tokens (LSTs), like $WBETH or $sfrxETH, and in exchange, receive $ezETH. 

What is ezETH?

$ezETH serves as the LRT in the Renzo Protocol, representing the user's restaked position within the EigenLayer ecosystem. Notably, $ezETH is a reward-bearing token. This means that its value has the potential to exceed the value of the underlying tokens due to its yield enhancement within Actively Validated Services (AVSs). 

Renzo’s $ezETH holds 9.5% of the EigenLayer ecosystem LRT market share.

Source: Dune Analytics

According to DefiLlama, it is the 3rd largest liquid restaking protocol by TVL, with a total value locked in the protocol totaling $746 million ($596 million in $ezETH, $66.3 million in $pzETH, and $64.8 million in $ezSOL). 

Source: Renzo

How ReStaking on Renzo works:

When users stake ETH or LSTs on Renzo, they receive $ezETH in return, representing their staked position. This reward-bearing token accrues value from AVSs, potentially exceeding the value of the underlying ETH. This liquid staking method allows participants to benefit from staking rewards while still maintaining liquidity, enhancing the overall utility of their staked ETH or LSTs.

Renzo's integration into the EigenLayer ecosystem makes it easy for users to interact with and restake assets without managing an additional token, ensuring seamless involvement in Ethereum's decentralized ecosystem.

Renzo protocol milestones:

• In June 2024, Renzo raised $17 million in a funding round led by Galaxy Ventures and Brevan Howard Digital Nova Fund, signaling future growth and innovation.
• Renzo has also integrated Chainlink Price Feeds and partnered with Connext Network for cross-chain native restaking on Layer 2 networks.

Renzo restaking is available on 12 major blockchains, with Solana, Linea, and Zircuit, among others. However, DefiLlama reports that most of the liquidity locked in the Renzo pool is still on the Ethereum blockchain.

This streamlined approach to liquid restaking makes Renzo's $ezETH an attractive option for those looking to maximize their staking rewards while maintaining liquidity in the evolving EigenLayer ecosystem.

Liquid Restaking on Kelp DAO ($rsETH)

Kelp DAO, launched in November 2023, is another liquid restaking protocol. Kelp DAO protocol offers one of the highest APY crypto cross-chain liquid staking solutions for Ethereum LSTs on EigenLayer.

Kelp DAO platform streamlines the staking process by eliminating the need to manually select services and validators while efficiently managing yields from restaking. Additionally, Kelp DAO pools staked assets into liquidity pools, enabling rewards from trading fees and protocol incentives. By partnering with AVSs, Kelp DAO improves security and reduces emissions related to rewards.

With $rsETH, Kelp DAO addresses issues such as complex reward systems and high gas fees by providing liquidity to assets deposited into re-staking platforms like EigenLayer. 

What is rsETH?

$rsETH is a liquid restaked token (LRT) representing fractional ownership of staked ETH and its rewards. $rsETH holders can earn staking rewards while maintaining liquidity and flexibility. They can leverage their restaked ETH across DeFi protocols and dApps without sacrificing access to their assets.

Kelp DAO’s rsETH holds 17% of the EigenLayer ecosystem LRT market share.

According to DefiLlama, Kelp DAO is the second-largest liquid restacking protocol, with a total of $1.07 billion worth of ETH LRTs locked in the protocol. 

How ReStaking on Kelp DAO works:

Kelp DAO offers a simplified approach to liquid staking by generating $rsETH from LSTs approved as collateral on EigenLayer. When users restake their LSTs, such as $stETH, they mint $rsETH, representing their ETH-staked holdings. $rsETH tokens can be traded on Automated Market Makers (AMMs) for liquidity or redeemed for the underlying staked assets. $rsETH accrues rewards based on services from Kelp DAO’s node operators, and the token’s value increases over time as rewards are accumulated. The $rsETH price reflects both accrued rewards and the value of staked tokens. 

Assets Restaked:

Source: DefiLlama

Kelp DAO does not charge fees for LST deposits and allows free deposits of $ETH, $ETHx, and $stETH on its dApp. Holders can increase their returns and utilize $rsETH tokens in other DeFi applications. Depositing rsETH into Kelp DAO allows holders to earn 10 Kernel Points per day for each 1 rsETH deposited.

Kelp DAO Milestones

1. Fundraising Success (May 2024)
Kelp DAO raised $9 million in a private token sale led by SCB Limited and Laser Digital. Other investors included Bankless Ventures, Hypersphere Ventures, Draper Dragon, and angel investors like Scott Moore, Sam Kazemian, Marc Zeller, and Amrit Kumar. The round concluded with a fully diluted valuation of $90 million.

2. Key Partnerships

• Polyhedra Partnership (April 2024): Kelp DAO allocated $300 million in staked ETH to strengthen Polyhedra’s security.
• Laser Digital Partnership (April 2024): Kelp DAO partnered with Nomura’s Laser Digital, making rsETH “the first LRT to be incorporated into a digital fund.”
• Planar Finance (May 2024): Kelp DAO teamed up with Planar to optimize yield strategies.
• Anzen Protocol (June 2024): Kelp DAO partnered with Anzen Protocol to improve payment optimization between validators and restakers.

3. Incentives and Rewards

• Kelp Miles: Kelp Miles complements EigenLayer restaked points, providing extra incentives for restakers. 
• KEP Token: An ERC-20 token representing EigenLayer Points, tradable and usable across the ecosystem.

Kelp DAO offers a flexible and efficient liquid restaking solution that enhances liquidity for staking participants. By enabling cross-chain compatibility and simplifying access to DeFi, it streamlines the restaking process, allowing users to maximize rewards while maintaining flexibility in managing their staked assets across various decentralized applications.

Solana ($SOL) staking

Solana is the third-largest PoS blockchain that operates on a Delegated Proof-of-Stake (DPoS) consensus mechanism. It's a global network with 29.7 million Fee Paying Accounts and more than 384.5 billion total transactions recorded. Solana handles thousands of transactions per second. It’s made possible thanks to thousands of nodes that operate independently of each other. Users can track validators’ performance on the Solanabeach. Currently, 1341 active validators are involved in the transaction processing. Solana established a solid infrastructure for its large ecosystem of dApps and marketplaces. According to Staking Rewards, Solana is the second largest proof-of-stake asset with approximately $47.49 billion in $SOL tokens staked across the network. Notably, data from Solana Beach reports that the Nominal Staking APY of Solana is slightly higher than Ethereum’s, at around 7.24%.

Process of Staking on the Solana Blockchain

In Solana’s Proof of Stake (PoS) system, participants can either become Validators by running nodes or act as Delegators, delegating their tokens to validators. In return, delegators earn a portion of the rewards that the validators receive. 

Validators are selected based on their stake in the network, creating a rotating leader system in which validators and delegators share rewards from transaction fees and network inflation. The success and rewards of delegators depend on the performance and reliability of the validators they choose to delegate their stakes to. Validators charge a commission, usually a percentage of the staking rewards, as a fee for their service. This structure empowers broader participation while maintaining network security and efficiency.

Staking on Solana involves transferring tokens to a supported wallet, creating a stake account, and delegating the stake to a chosen validator. Delegated $SOL tokens are locked for a defined period. Both validators and delegators earn rewards in additional $SOL tokens while contributing to the network's security. Transaction fees in the Solana network are burned, decreasing the total supply of $SOL and enhancing the token’s scarcity over time. 

Staking yield comes from inflationary issuances being distributed across delegated staking accounts and validator vote accounts per the validator commission rate. Due to this design, the staking yield is to be primarily a function of the fraction of SOL that is staked on the network.

SOL Staking on Coinbase

Coinbase is one of the top choices for custodial $SOL staking. One of the most popular centralized exchanges is also the fifth-largest Solana Validator, with over $9.8 million in $SOL tokens staked via Coinbase Staking. Moreover, 2.55% of the total staked $SOL across the network is delegated to the Coinbase Cloud validator.

Source: Solana Beach

Coinbase maintains world-class, enterprise-grade staking infrastructure across multiple networks with zero slashing events and a 99% uptime guarantee.

Solana Liquid Staking: Marinade Staked SOL (mSOL)

Launched in 2021, Marinade Finance provides a solution for on-chain Solana staking with the highest APY compared to other liquid staking protocols. Marinade Finance operates as a non-custodial staking protocol on the Solana blockchain. Marinade dApp uses an automated staking strategy developed by the core team, with input from MNDE and mSOL holders. 

Marinade Finance offers users the option to stake $SOL natively or participate in a liquid staking pool, which includes over 100 high-performing Solana validators. Native staking with Marinade does not require smart contract interaction, while liquid staking involves exchanging staked Solana tokens for Marinade Staked SOL ($mSOL). 

According to DefiLlama, Marinade Finance is the fourth-largest liquid staking protocol with its TVL having exceeded $1.15 billion. Most of the Marinade Finance users opt for liquid staking, with $607.4 million currently locked in the Marinade Liquid Staking pool. Participants in the liquid staking on Marinade Finance can enjoy the benefits of staking while maintaining liquidity. 

What is mSOL?

$mSOL is a liquid staking token obtained by staking SOL on the Marinade protocol, representing the staked $SOL within Marinade's stake pool. $mSOL tokens serve as a receipt, enabling later conversion for the staked SOL plus the earned rewards.

Additionally, $mSOL can be utilized in DeFi activities with over 20 integrations of the Marinade protocol. Coinbase and Kraken allow users to exchange $SOL for the mSOL liquid staking token, which is the only third-party tradable liquid staking token supported by these exchanges. This allows users to receive the same APY as those holding the rewards-bearing liquid staking token in DeFi.

$mSOL is a rewards-accruing liquid staking token. This means that after each Solana epoch (2-3 days), its value is recalculated based on the staking rewards earned by the Marinade Stake Pool. 

Source: Marinade Finance on X

It's important to take into consideration that new $mSOL are minted only when an equivalent amount of SOL is being exchanged for them. As a result, the total staked amount increases, leading to a rise in the price of mSOL relative to SOL each epoch. This is contingent upon the distribution of staking rewards for the SOL staked in the protocol. For instance, if you hold mSOL for a year, its value against SOL will have increased by 9.04% (Marinade's APY at the time of writing).

Source: Marinade Finance Docs

According to Dune Analytics, Marinade Finance's mSol accounts for 12.7% of the SOL staked in LSTs, making it the third largest in this market segment.

How mSOL Liquid Staking Works:

• Deposit SOL: Users deposit SOL into Marinade, a non-custodial protocol.
• Receive mSOL: In return, mSOL is issued, representing staked SOL. The value of mSOL grows over time as staking rewards accumulate.
• Staking Mechanism: Marinade diversifies SOL stakes across multiple validators, enhancing decentralization and network security while generating additional SOL value via yield to mSOL.
• Utilizing mSOL: mSOL is liquid, enabling users to participate in DeFi activities, such as providing liquidity to LPs or yield farming.
• Unstaking and Redemption: Users can unstake their mSOL either by going through Marinade’s cooldown period or simply trading it for SOL on exchanges.

NEAR Protocol ($NEAR) Staking

In NEAR’s Proof-of-Stake (PoS) blockchain, staking is a fundamental mechanism for securing the network and ensuring decentralization. 

There are more than $154.78 million in total value locked on Near blockchain, as reported by DefiLlama. 

Historical Network Performance

The nearscope reports that over 600 million $NEAR are locked on-chain and that 234 Active Validators support network operations.

Reward Rate: The network distributes rewards from a 5% yearly inflation, of which 90% goes to validators and 10% to the protocol treasury. Additionally, 70% of transaction fees are burned, contributing to token scarcity over time. The current Reward Rate is 9.55%.

Validator Rewards: Validators receive epoch-based rewards distributed in proportion to their staking participation. Validators with high uptime (at least 90% performance) are rewarded, while those with less than 90% performance may be excluded from future participation.

Delegation: Users can stake their $NEAR tokens on behalf of validators through smart contracts that enable NEAR staking. With this approach, users contribute to networks’ security without the need to run their own nodes. It’s important to note that validators charge a fee for generated rewards.

NEAR token holders are enabled to stake their tokens through MyNearWallet. By delegating their $NEAR, users help to secure the network and earn rewards in return. When you delegate your tokens, you are depositing and staking your token with a specific staking pool that has been deployed by a validator.

How NEAR Staking on My Near Wallet Works:

The process of delegating $NEAR tokens through My Near Wallet is the most straightforward process of staking. Follow these steps to get started:

1. Access the Staking Tab: After logging into My NEAR Wallet, navigate to the Staking tab from the main menu and click on the "Stake My Tokens" button to start staking.

2. Choose a Validator Pool: Select a validator pool based on their fee structure and pool details. A list of available pools for delegation (one per validator) is available on the Explorer Validator page.

3. Review Pool Summary: After selecting a validator, review the summary and click "Stake with Validator" if you're satisfied with your choice.

4. Specify the Staking Amount: Enter the amount of NEAR you wish to stake and confirm your decision by clicking "Stake."

5. Staking Confirmation: You’ll receive a confirmation message that your NEAR tokens have been successfully staked with the selected validator.

Unstaking your NEAR:

1. Unstake NEAR from the Staking Tab: Navigate back to the Staking tab and click "Unstake."

2. Select Validator Pool: Choose the validator pool you wish to unstake from.

3. Select Unstaking Amount: Enter the amount of NEAR you want to unstake, then click "Unstake Tokens."

4. Confirm Unstaking: Confirm the transaction.

5. Unstake Confirmation: A success page will notify you that your NEAR is being unstaked.

Source: Near Wiki

By following this guide, you can easily stake and unstake your NEAR tokens through My NEAR Wallet while supporting network security and earning rewards.

Near Liquid Staking on Meta Pool ($stNEAR)

Introduction to Meta Pool

Meta Pool is the leading liquid staking platform on the NEAR protocol. Launched on August 21, 2021, Meta Pool was created to solve the issue of capital inefficiency that often comes with traditional staking in Proof-of-Stake (PoS) networks like NEAR. It allows users to stake their NEAR tokens while maintaining liquidity, enabling participation in DeFi activities across the NEAR and Aurora ecosystems. Meta Pool supports the decentralization of the NEAR network by distributing staked tokens across multiple validators, improving the network’s censorship resistance.

According to Meta Pool Stats, approximately a total value of $80.7 million is locked in the Meta Pool protocol (in $NEAR, $ETH, $SOL, $IP and $AUR tokens). 

DefiLlama reports that Meta Pool is the largest liquid staking protocol, built on the NEAR blockchain, with TVL of $71.5 million as of March 18, 2025.

Meta Pool offers users the opportunity to stake $NEAR on the NEAR blockchain and $wNEAR on the Aurora blockchain, making it the leading liquid staking provider for both ecosystems. Meta Pool enables liquid staking without the need to bridge assets, ensuring a smooth staking experience. With support for the Metamask wallet, users can seamlessly stake directly from the Aurora and Near mainnet, expanding their DeFi opportunities across both blockchains.

What is $stNEAR?

When users stake their $NEAR and $wNEAR tokens through the Meta Pool, they receive $stNEAR in return. $stNEAR is a liquid token representing staked NEAR that continues to accrue staking rewards while unlocking users’ liquidity. This flexibility allows users to engage in various activities such as lending, yield farming (Meta Yield), and borrowing using DeFi protocols across both NEAR and Aurora networks. By using $stNEAR in dApps, users can earn additional returns while still benefiting from their staking rewards, maximizing their earning potential within the NEAR ecosystem. This dual utility makes $stNEAR a powerful asset for both staking rewards and liquidity-based earnings. 

How NEAR Liquid Staking on Meta Pool Works

The process of liquid staking through Meta Pool is straightforward:

Source: Meta Pool on Medium

• Stake NEAR: Users deposit NEAR into Meta Pool and receive $stNEAR in return, which will grow over time as staking rewards accrue.
• Liquidity and Flexibility: Instead of locking their NEAR tokens, users can trade or use $stNEAR across multiple DeFi platforms, such as lending, borrowing, and yield farming.
• Maximize Earnings: By using $stNEAR in DeFi protocols, users earn not only from the protocol’s staking rewards but also from the additional APY (Annual Percentage Yield) offered by DeFi applications. This dual benefit significantly increases the potential returns from the staked assets.
• Unstaking Process: To unstake, users trade their $stNEAR for NEAR on supported exchanges or unstake directly through Meta Pool with a waiting period of approximately 52-65 hours (4 epochs).

Conclusion

The best crypto coins for staking provide a range of benefits, from high yields to enhanced network security and decentralization. Each of the top 10 staking coins caters to different investment preferences, whether you prioritize stable returns, liquidity, or long-term growth. Stablecoins like $USDe offer risk-averse investors predictable rewards, while assets like $ETH and $NEAR enable broader participation in their ecosystems through liquid staking tokens (LSTs) that integrate seamlessly into DeFi protocols.

Pocketcoin ($PKOIN) stands out as a top staking asset with an impressive 42.17% annual return, powered by its role in Bastyon’s decentralized social and video ecosystem. As a deflationary utility token, PKOIN is used for payments, ads, and content monetization, making it a unique blend of staking rewards and real-world applications.

With the evolving liquid staking landscape, crypto staking remains a vital strategy for generating passive income while strengthening PoS blockchain security. When selecting the best staking cryptocurrency, always conduct thorough research and consider key factors like APY, lock-up periods, validator reputation, and utility within its ecosystem.

FAQ 

What is Crypto Staking?

Cryptocurrency staking involves locking coins to enhance security and support the PoS blockchain operations, earning rewards in the form of additional tokens in return. Validators running a node are responsible for processing network transactions. Instead of running a node, most users delegate their tokens to a third-party validator and earn a share of the staking rewards. The more coins are at stake, the higher the chances for validators to be elected for block validation. The staking process incentivizes validators to be active and maintain high performance and encourages delegators to stake more coins to earn greater rewards on behalf of a validator. There are 3 main crypto staking types: native, liquid (re)staking, and custodial staking.

How Staking Works?

• Instead of running a node, most users delegate their coins to validators to maintain the security and functionality of the PoS blockchain. For their involvement in the network operations, staking participants receive additional tokens in return. In order to stake their coins users must choose a staking provider, considering underlying validator performance and network security. Also, users should be aware of different lock-up periods, fees, and floating yields depending on the different coins, and staking types.

Is Staking Crypto Worth It?

Staking crypto is a great way to maximize passive income, but it's essential to take into account all the risks involved. While different staking types offer attractive rewards in the form of additional tokens, most of the crypto coins are still suffering from unstable market conditions and low liquidity in pools during the bear market. It's important to conduct detailed research on staking assets and staking providers before staking crypto.

What is Staking APY/APR?

APY (Annual Percentage Yield) or APR (Annual Percentage Rate) reflects the expected staking rewards (yields), represented in %. APY represents the annual percentage yield and takes into account the effect of compounding, while APR represents the annual percentage rate and does not consider compounding. Whether you plan to simply stake your assets or go for a more complex restaking approach, one metric might be more relevant than the other.

• APY: Reflects the potential returns earned over a year, including reinvestment.
• APR: Reflects a straightforward percentage of return without reinvestment.