2021 was a huge year for crypto investors. As the post-pandemic landscape opened the doors for the recovery of stock markets around the world, the numbers of the cryptocurrency industry jumped progressively and increasingly to generate astonishing results.
With the growing demand for PoS solutions, interoperability, and cross-chain tools, crypto staking is one of the most profitable activities any investors can engage in – especially considering Ethereum’s 2.0 Merge and Polkadot’s rapid growth. So, now you have a great tool to grow your profits from options at Bitlevex or any other type of derivative.
Highest Cryptocurrency Staking Awards in 2022 – Top Performing Assets
Polkadot (DOT)
Polkadot is an interoperability-focused blockchain ecosystem founded by Gavin Wood, who was not only the co-founder of Ethereum but played a vital role in the development of the network.
DOT is the ecosystem’s native asset, considered one of the premier staking options available nowadays.
In this sense, DOT permits the multiple blockchain networks to transfer data and information between each other, which includes sharing features while pooling their value or security for optimized performance.
Entirely PoS-based, Polkadot’s DOT yields significant yearly returns to investors. So far, DOT staking rewards paid up to 14% yield per year – undoubtedly, an unmissable opportunity.
Binance Coin (BNB)
Currently, Binance is the world’s largest cryptocurrency exchange considering the daily trading volume. In July 2017, Binance launched its native coin (BNB) during an initial coin offering (ICO).
Continuing the trend that went through 2021, BNB will remain one of the best staking options available in the crypto market. Binance offers a stake for users willing to delegate Binance Coin to validators without any lower or upper limit.
Unstacking happens within only seven days while staking rewards for BNB holders can reach up to 30% annually. Depending on the transaction fees, staking rewards might be significantly volatile – considering the rewards originate from transaction fees only.
Cosmos (ATOM)
Cosmos is an innovative decentralized platform focused on customization and interoperability. The network offers solutions for start-ups to seamlessly create and provide blockchain-based services.
To achieve it, the network bridges the gap between distinct blockchain service providers to facilitate communication among them. Hence, the network’s main mission is to simplify the communication process and enhance collaboration between different blockchains.
Ranked as the world’s 25th largest cryptocurrency in terms of market cap, ATOM is Cosmos‘ native virtual currency. As the network uses DPoS (Delegated Proof of Stake), delegators and validators operate in the staking process.
Accordingly, delegators are responsible for authorizing which validators must verify the network’s transactions and add new chains. Ultimately, investors who decide to stake Cosmos usually receive annual rewards of around 8.32%.
Tezos (XTZ)
The Tezos project started in 2014, five years after the launch of Bitcoin. Developed by just two people, the husband-and-wife duo of Arthur (CTO) and Kathleen (CEO) Breitman, Tezos has had a hectic few years. They founded a startup called Dynamic Ledger Solutions (DLS) intending to deploy Tezos.
In July 2017, they launched an ICO (Initial Coin Offering) to fund the project. Needless to say, the Tezos ICO broke all funding records in the blockchain universe.
Tezos was designed with a PoS system in mind from the start. While users can earn interest for locking their XTZ, as is traditional in PoS, holders can also participate in the aforementioned governance methods. That’s right, the only way to vote on the Tezos network is to stake XTZ.
By participating in the network, users earn rewards for doing so. Tezos encourages an active and invested network through these methods. In that sense, the network’s stakers generally earn around 6% in annual rewards through Tezos.
ICON (ICX)
ICON is a project that seeks to provide interoperability between blockchain networks. Supports hundreds of transactions per second. ICON uses an amended version of the traditional PoS consensus.
Simply put, this means that at least two-thirds of the network must agree on transactions and other things for them to go through. This is a security mechanism that understands that there will always be potentially dangerous nodes and malicious actors within the network.
Nonetheless, there is little to none chance that these bad actors make up more than two-thirds of the entire network. In this way, ICON somehow guarantees that its users are always protected from attacks.
ICON staking is very easy, possible through various cryptocurrency exchanges, hardware wallets, and the official ICON browser extension wallet. So far, ICON stakers can earn up to 16% per year in rewards.
Highest Cryptocurrency Staking Awards in 2022 – Final Thoughts
Staking applies to blockchain networks that use the Proof-of-Stake (PoS) consensus algorithm, such as the upcoming Ethereum 2.0 update. Staking strengthens the security of a network, wherein users are incentivized with passive income to do so.
Hence, users who stake a certain amount of crypto become high-priority users who validate transactions. Ultimately, this system offers users a passive way to profit from their investments – a trend that will clearly grow in 2022.
