Top 10 Best Crypto Coins to Stake in October 2024

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 strategy incentivizes users to lock up their tokens, reducing the circulating supply, which can help counter inflationary pressures. 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.

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.

Native Staking

Native staking involves staking directly on a PoS blockchain, such as the Ethereum network. This complex process relies on validators (stakers) being chosen to generate new blocks and validate transactions. The mechanics of technical staking are carried out using smart contracts, showcasing the advanced and automated nature of this approach to maintaining the blockchain's security. Native staking requires users to lock up their coins for a specific period, during which they cannot access or use their assets. The advantage of Technical staking is the absence of counterpart risk since no third-party services are involved, while the disadvantage is the high entry costs. 

Users either delegate tokens to a validator or run their own validating node:

• Delegation: Users can delegate their tokens to a trusted validator, who will perform the validation of the transactions on the chain. In return, users will receive a share of the staking rewards.
• Running a Validator Node: Users can run their validator node if they have the required technical expertise and resources, taking full responsibility for the validation process and earning rewards directly.

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

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

Custodial Staking 

Custodial staking involves staking on centralized exchanges or other third-party platforms. Crypto staking on CEX offers a straightforward and convenient way for individuals 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, the 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 Crypto of October 2024

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 in October 2024, 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.

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. 

47% of the total $USDe supply, which amounts to 2.55 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. Over time, rewards in the form of an additional $USDe are reflected in the value of a staked asset. 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, 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 $1.2 billion, which exceeded the TVL of $DAI from June 1, 2024 to August 15, 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.

The current APY for $sUSDe stands at 10%, while the Ethena protocol boasts a TVL of $2.55 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 $49.6 billion, making it the blockchain with the largest TVL. After ETH 2.0 Upgrade, staking on Ethereum has 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 34,5 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 network's PoS consensus process. By staking their Ether, validators help 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%. This makes it a rewarding option for individuals seeking to grow their crypto holdings with minimal effort.

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 staking period. WhiteBIT ensures full transparency in the management of crypto lending, giving users confidence in how their assets are being used 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 their assets are transferred to WhiteBit’s wallet and entrusted to the platform for safekeeping and management, which introduces some degree of risk. Despite these considerations, 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 $101.66 billion in reserve and more than $12 billion in trading volume, Binance still holds the №1 spot as the biggest centralized exchange. 

Ethereum staking on Binance shows much more positive Net Staking Flow dynamics compared to other CEX and liquid staking options. It means that users are continuing to stake their Ether on Binance and withdraw their staked ETH from other staking providers.

 
Source: Dune Analytics

This is also reflected in the WBETH TVL, which stands at $3.27 billion and has significantly recovered by 37% compared to the previous month.

Source: DefiLlama

$WBETH is available on Ethereum and Binance Smart Chain, with a $3.27 billion TVL in the Ethereum pool and $500 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 4.1 million worth of ETH staked, representing 48.19% 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 $498 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, allowing them to trade, transfer, or utilize $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 liquidity, staking rewards, and DeFi compatibility makes cbETH a versatile asset for users looking to maximize their returns while maintaining flexibility with their staked ETH.

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.
   • $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 unstaking, users convert $sfrxETH back to $frxETH and 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 applications 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 +12.00% compared to $stETH.
• $sfrxETH returned +29.20% compared to $rETH.
• $sfrxETH returned +26.82% compared to $cbETH.

Frax Finance Staking provides superior flexibility and liquidity compared to traditional staking methods. Through its dual-token system, Frax delivers a liquid staking solution, combining the stability of $frxETH with the reward-earning potential of $sfrxETH. This makes it 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 10.1% of the EigenLayer ecosystem LRT market share.

Source: Dune Analytics

According to Renzo, it is the 4th largest liquid restaking protocol by TVL, with a total value locked in the protocol, is over $1 billion ($896 million in $ezETH and $154 million in $pzETH). 

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 7 major blockchains, with Blast, Arbitrum, and Linea, 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 7.1% of the EigenLayer ecosystem LRT market share.

According to DefiLlama, Kelp DAO is the 6th largest liquid restaking protocol by TVL, with a total value locked in the protocol is $670 million. 

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. 

Kelp DAO does not charge fees for LST deposits and allows free deposits of $ETHx, $sfrxETH, and $stETH on its dApp. Holders can leverage their returns and use $rsETH tokens in other DeFi applications

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 a blockchain platform that operates on a Delegated Proof-of-Stake (DPoS) consensus mechanism. Its main goal is to combine scalability with decentralization. Solana supports a wide range of dApps, marketplaces, and enterprise use cases. The platform aims to provide a high-performance, secure, and scalable infrastructure without sacrificing decentralization. According to Staking Rewards, Solana is the second largest proof-of-stake asset by the total value of staked tokens across the network, following Ethereum. Notably, data from Solana Beach reports that the Nominal Staking APY of Solana is slightly higher than Ethereum’s, at around 7%.

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. 

Validator selection is based on their stake in the network, creating a rotating leader system where 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 with whom they choose to delegate their stakes. Validators charge a commission, typically 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. Once delegated, the $SOL tokens are locked for a period, and both validators and delegators earn rewards in $SOL, which contributes to the network's security by incentivizing more users to stake. Transaction fees in the Solana network are burned, decreasing the total supply of $SOL and enhancing the token’s scarcity over time. Staking provides users with a way to earn passive income while contributing to the overall security and efficiency of the network.

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

One of the top choices for custodial $SOL staking is Coinbase. One of the most popular centralized exchanges is also the third-largest Solana Validator, with over $10 million $SOL tokens staked via Coinbase Staking. Moreover, 2.84% 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.

How Staking on Coinbase works:

When the minimum balance is reached, a node deposits a certain amount of cryptocurrency into the network as a stake, similar to a security deposit. The size of the stake directly affects the likelihood of that node being selected to forge the next block. If the node successfully creates a block, the validator receives a reward, much like how a miner is rewarded in proof-of-work chains. However, validators will lose a portion of their stake if they double-sign or attempt to attack the network.

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 second largest liquid staking protocol with its TVL having exceeded $1.2 billion. Most of the Marinade Finance users opt for liquid staking, with $743 million currently locked in the Marinade Liquid Staking poo. 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 note that the protocol cannot mint new mSOL without an equivalent amount of SOL 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 7.37% (Marinade's APY at the time of writing).

Source: Marinade Finance Docs

According to Dune Analytics, Marinade Finance’s mSol holds 20% of the SOL Staked in LSTs market share.

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. Users can earn rewards by delegating their $NEAR tokens to validators, who process transactions and maintain network integrity. This process helps determine which validators create new blocks based on the amount of NEAR they have staked. 

According to Staking Rewards, 50.75% of the circulating $NEAR supply is currently being staked or delegated to the network. At the time of writing, the $NEAR Staking Market Cap is approximately $2.74 billion.

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 8.87%.

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: Delegators can stake $NEAR by assigning their tokens to validators via smart contracts, contributing to network security without needing to run their own nodes. Validators charge a fee for the staking rewards they help generate.

How NEAR Staking on My Near Wallet Works:

Staking $NEAR tokens through My Near Wallet is a straightforward process. 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.

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.

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 $131 million is locked in the Meta Pool protocol. DefiLlama reports that It’s the second-largest Liquid Staking protocol on Near blockchain.

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 decentralized finance (DeFi) activities such as lending, yield farming (Meta Yield), and borrowing across both NEAR and Aurora ecosystems. By using $stNEAR in DeFi applications, 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. Current exchange rate: 1 stNEAR = 1.32961 NEAR. 17.000 unique wallets holding stNEAR.

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 offer a wide variety of benefits, ranging from relatively high yields to strong network security and decentralization. Each of the top 10 coins has unique features tailored to different investment preferences, whether you’re seeking stable returns, liquidity, or long-term growth. Stablecoins like $USDe offer risk-averse investors predictable rewards, while more volatile assets like $ETH and $NEAR enable broader participation in their ecosystems with LSTs that can be used across a wide range of DeFi protocols. With the evolving liquid staking landscape, crypto staking remains a crucial strategy for generating passive income while contributing to the security and scalability of PoS blockchains. Remember to conduct thorough research and consider factors like APY, lockup periods, and validator reputation when selecting the ideal cryptocurrency for staking.

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 take compounding into consideration. 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.