What Cryptocurrencies Can Be Staked? (DeFi Projects)
Staking is a popular method among cryptocurrency enthusiasts to earn rewards by holding specific currencies in a wallet and participating in the network's operation. In the context of DeFi (Decentralized Finance) projects, several cryptocurrencies stand out for their staking capabilities:
- Ethereum (ETH) - With the transition to Ethereum 2.0, ETH can be staked to secure the network and earn rewards.
- Cardano (ADA) - Cardano allows users to stake their ADA, making it a popular choice for long-term investors.
- Polkadot (DOT) - Polkadot utilizes a staking mechanism called Nominated Proof-of-Stake (NPoS) where users can nominate validators.
- Tezos (XTZ) - Tezos offers a unique self-amending blockchain with a staking feature called "baking."
- Solana (SOL) - Solana's fast transactions and low fees make it an attractive option for staking rewards.
In addition to these prominent options, many other DeFi projects have introduced staking features, allowing investors to earn passive income. Always conduct thorough research to assess potential risks and returns.