Cardano and Ethereum are at 2nd and 3rd place respectively.
Ethereum competitor, Solana is now the topmost Staked cryptocurrency in the world, according to Staking Rewards, a Crypto Staking analysis company.
Solana is already making waves for its rise in use and value. Now it is also becoming the go-to asset to earn passive income.
What is Staking?
Cryptocurrency Staking is a mechanism in blockchain networks using the Proof-of-Stake consensus mechanism. In this system, each validator has to Stake the native token as collateral so that the network can make sure the validator will not take any malicious action.
The more native token a miner validator has, the more mining power it gets. Sometimes validators may create pools in which others can also invest and Stake the native token. Every stakeholder may get the block reward, earned by the validator, in proportion to the amount of value Staked. The validator may also charge a fee on top of that.
More than $81 billion were Staked in Solana when this article was being written.
As per the website, a person may get 6.79% return per year by staking Solana.
Over 77% of the eligible tokens are Staked.
The value locked in Ethereum 2.0 is less than half of that of Solana at around $34 billion. Ethereum ranks 3rd by Staked value.
At 2nd position is Cardano with $43 billion in value Staked.
It has been a bearish run for the market in the past few days, which saw Solana dropping around 20% in the past 10 days. At the time of writing, Solana was trading at 201 USDT on Binance.
There are other ways too for earning money than trading or investing in crypto.
Decentralized Finance (DeFi) has opened several avenues for investors to earn money. Now a person can even earn money by just playing games, mining, running a lightning node etc.
How do you earn passive income? Comment below.
News recommendation: India to Test CBDC in 2022; Will assist Peru