CryptoGlobe, citing Bloomberg Intelligence’s Crypto Outlook report, reported that Polkadot ($DOT.X) and Cosmos ($ATOM.X) are the only two major Proof-of-Stake layer-1 networks that currently beat Ethereum ($ETH.X).
The Real (Adjusted) Rate % for Polkadot and Cosmos was 5.80% and 5.13%, respectively, compared to Ethereum’s 5.03%. A very interesting takeaway from the report was a clear sign that institutions may be looking into the DeFi space for future yields:
“The emergence of crypto as an asset class in conjunction with a yield component presents a new set of considerations for investors when assessing the risk/reward opportunities in this space. Given the volatility and newness of the demand for smart contract use, staking assets could be considered as equivalent to junk bonds. Yields for proof-of-stake are similar to corporate bonds in that they’re tied to the fees/cash flows of the network/company.”
Not all cryptocurrencies provide staking rewards, but those that do can vary significantly from one network to the next. Additionally, some cryptocurrency exchange simply the staking process by offering it directly through their platform, such as Kraken.
Staking rewards via Kraken:
- Polkadot 9-12% RPY (Rewards Per Year)
- Cosmos 12-15% RPY
- Ethereum 4-7% RPY
If interest rates continue to rise and if there is a real shift to income generation and yield, the crypto space will likely be the new frontier. 🤲