The latest data shows that cryptocurrency staking can offer as much as 450% more
Despite solid growth across both markets, the average cryptocurrency staking reward is currently 450% higher than the average earnings paid to S&P 500 investors.
The S&P 500 index, which tracks the US’s 500-largest public companies, recorded its highest first-quarter growth in five years of 10.16% in 2024, according to data from Google Finance. However, the average S&P 500 dividend yield of 1.35% was the lowest since Q4 2021, a difference of 0.23% from the all-time low of 1.12% in Q1 2000.
In comparison, crypto staking currently pays an average yearly return of 6.08%, according to benchmark reward rate info from Staking Rewards. Algorand currently pays the highest staking reward rate among the top 100 cryptocurrencies at 84.19%, with Cosmos second at 17.17% and Filecoin at 16.34%.
The S&P 500 dividend yield is the average payout from all individual stocks, with Microsoft recording the highest dividend yield of 0.71%. Apple is next with 0.56%, followed by Nvidia Corp with 0.02%.
However, the risk is higher with high-yield staking, as assets are often locked up, which sometimes keeps investors from liquidating if the value of the underlying asset declines.
Grayscale Investments recently established an investment fund for its best clients in an effort to publicize their portfolios to show income yielded from crypto staking. It highlighted three proof-of-stake-based tokens that are part of the fund – Polkadot’s DOT has a 14% share, Solana’s SOL holds 20%, and Osmosis (OSMO) has 24%, with 43% classified under other tokens.
Grayscale also seeks US Securities and Exchange Commission authorization to stake Ether in its Ethereum ETF fund if approved in 2024.
