Staking can be an excellent way to earn a passive income on your crypto holdings. But with so many different options to choose from, which is the best crypto to stake? In this article, you’ll read what experts consider the top choices for staking cryptos, each offering stakers decent returns and a superb long-term outlook.
1. Metacade (MCADE) – The Home of Play-To-Earn
Metacade is a brand new crypto project that’s been attracting millions of dollars in investment during its ongoing presale. Its goal is to become the number one spot in Web3 for play-to-earn (P2E), where users will be able to compete in gaming tournaments for their chance to win huge prizes, interact with fellow GameFi enthusiasts, and receive rewards for their contributions to the community.
Social spaces have become critical for gamers over the past decade. While gaming forums existed long before platforms like Discord and Twitch were around, the next generation of gaming requires a purpose-built solution: a fully decentralized platform operated by the players.
Through the use of blockchain technology and crypto, Metacade is poised to become the top GameFi community, thanks to its community-first philosophy. For example, users contributing reviews, alpha, and other helpful content can earn MCADE tokens for their efforts.
Regular gaming tournaments, prize draws, and competitions also offer members another way to boost their P2E income, alongside learning the tricks of the trade when it comes to maximizing their in-game earnings. There’s even the Metagrant program, which has the potential to redefine the GameFi industry.
Metagrants offer game developers funding from the Metacade treasury to help develop their projects and launch them within Metacade’s virtual arcade. Developers just need to earn the most votes for their proposals from MCADE holders, in one of the Metagrant competitions. The winners can use the funds received to help with development, marketing, and hiring new staff to make their games the best they can be.
GameFi is set to explode at 10x the rate of regular gaming by 2025, according to Crypto.com, so Metacade is in an ideal position to expand rapidly in the coming year. Alongside benefiting from the predicted growth of the MCADE token, stakers will be able to earn rewards from the project in the form of stablecoins.
While it’s not yet known how much MCADE is expected to yield annually, there is talk of introducing a token-burning mechanism that would remove MCADE tokens from the circulating supply. This could boost the annual yield stakers receive by restricting supply and encouraging deflation.
With features likely to be a hit with P2E gamers, like gaming tournaments, a system that rewards players for their contributions, and the Metagrant program, Metacade could offer stakers a handsome return, both on their initial investment and through staking rewards. That’s why it comes first in this list of the best cryptos to stake.
>>> You can participate in the Metacade presale here <<<
2. Ethereum (ETH) – Recently Transitioned to Staking
Ethereum is the world’s most popular layer-1 network and the 2nd most valuable crypto on the market, currently holding a market cap of $189 billion (CoinGecko). In 2022, Ethereum began transitioning from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) system, enabling users to validate transactions on the network by staking their tokens.
The only caveat was that they would remain locked up until the Shanghai upgrade was complete, but now, a date has been set for it to arrive in March. The transition paves the way for increased transaction speeds, lower gas fees, and a 99.9% reduction in Ethereum’s energy usage, creating a remarkable backdrop for ETH’s future adoption and growth.
According to Staking Rewards, the adjusted reward (considering the token’s inflation rate) stands at 4.51% as a validator. However, you will need 32 ETH, or around $48,000, if you decide to go this route. Luckily, staking pools, like Lido, can offer similar rates of approximately 4.6% APY with no minimum lockup necessary. This reward rate, combined with Ethereum’s recent upgrades, makes ETH one of the best cryptos to stake right now.
3. Binance Coin (BNB) – A Deflationary Token Offering High Returns
Binance Coin is the native token of the Binance exchange, the world’s largest centralized exchange, and one of the best cryptos to stake. It stands at number five in the list of top cryptos by market cap, with a $41 billion valuation. BNB itself is a versatile token, initially used to offer traders discounts on fees when using the Binance exchange. Nowadays, it can be used as a payment method and to pay gas fees when using decentralized apps (dApps) on the BNB Chain.
BNB makes an excellent proxy for investing in bull markets in general. With the upcoming bull market in 2023, BNB investors stand to benefit as BNB-based dApp adoption rates pick up and traders use the token to realize discounted fees. Alongside quarterly supply burns, expected to remove almost $600 million BNB from the supply this quarter (BNBBurn), BNB is likely to be an outstanding buy-and-hold for 2023.
To reap even more benefits, you can choose to stake your BNB by delegating it to other validators. Thanks to BNB’s deflationary tokenomics, yearly adjusted rewards sit around 9% while only requiring a minimum of 1 BNB, around $300 today. Moreover, the minimum lock-up period is only seven days, typically much lower than other chains.
4. Polygon (MATIC) – A Stakeable Token With Some Huge Partnerships
Polygon is a layer-2 scaling solution designed to optimize the Ethereum network. It’s currently the tenth most valuable crypto project with a market cap of $9.74 billion. By providing fast and secure transactions, lower fees, and improved overall scalability compared to Ethereum’s network, Polygon has become the blockchain of choice for developers looking to use Ethereum with much greater efficiency.
Polygon’s adoption exploded in 2022, and this trend is expected to continue into 2023 and beyond. Some of its most recent big-name partnerships include Meta, which is launching its digital collectible feature on Instagram through Polygon. Starbucks, meanwhile, has created an NFT-based loyalty card system on the network. Disney has introduced Polygon into its Accelerator program.
It’s clear to see why MATIC could make for a superb investment in 2023. Its staking rewards are pretty generous, too, with a 2.4% adjusted reward for delegating MATIC. Only 1 MATIC is required to start staking, which, considering each token is worth around $1.10 right now, is an affordable way for anyone to begin their staking journey. That’s why MATIC is the fourth best crypto to stake.
5. Polkadot (DOT) – High Rewards for DOT Stakers
Polkadot is a next-generation blockchain platform that quickly climbed the ranks following its launch in 2020. Created by Ethereum co-founder Gavin Wood, Polkadot is designed to be a multi-chain network, connecting multiple blockchains to solve the critical issue of communication across entirely separate chains. This innovation has made Polkadot the 14th top crypto with a market cap of $7.4 billion.
This communication is more formally known as interoperability. With Polkadot, developers can create separate chains with specific functionalities, known as parachains, which can interact and share data with other chains. This reduces the need for multiple blockchain solutions to compete that “do it all” and opens up new possibilities for dApps and decentralized finance (DeFi) projects to communicate across various chains.
Additionally, DOT offers some decent staking rewards and is widely regarded as one of the best cryptos to stake. By delegating DOT to validators, stakers can receive 6.96% annually after adjusting for the token’s inflation. You just need a minimum of 80 DOT, approximately $500 at its current price of $6.20, and to be willing to lock your tokens up for at least 28 days.
Staking Rewards shows that delegating to a staking pool can earn 8.24% with just a minimum of 1 DOT, but the overwhelming majority (99.69% vs. 0.28%) choose the option previously discussed.
6. USDC – A Stable Place To Park Your Cash
Finally, you may prefer to simply stake stablecoins instead of stashing your cash in a regular bank account. You aren’t actually staking USDC; instead, you’d be lending it out. However, both methods facilitate transactions and offer an annual yield, essentially serving the same purpose for stakers. Especially when considering that USDC is pegged to the US dollar, it can provide a lower-risk alternative for users looking to put their money to work.
But why USDC in particular? Unlike algorithmic stablecoins and the questionable backing of USDT, USDC is provably backed 1:1 by US dollars held in regulated financial institutions. It’s part of the reason that there is over $1.8 billion USDC staked, roughly double DAI’s $915 million and over a billion more than USDT’s $724 million (Staking Rewards).
The two most popular options for lending USDC are through Aave and Swissborg, which offer annual returns of 1.88% and 4.74%, respectively. While these figures might not outpace inflation, they can provide investors with a stable place to park their cash while figuring out their next moves, without exposing themselves to the volatility of regular cryptocurrencies.
Metacade (MCADE) Seems Like the Best Crypto To Stake
When choosing a project to stake, it’s vital to consider the underlying long-term value of the crypto you pick. While some projects may offer mind-boggling annual returns, it’s often simply an attempt to boost demand for a token that otherwise doesn’t have much going for it. With the six cryptos here, they’re likely to perform well in the long term, thanks to their key fundamental features.
Ethereum and BNB, for example, are well-established players that are expected to continue appreciating over time. USDC, meanwhile, is a stable investment that can offer higher returns than a regular bank account. But if you’re looking for maximum investment potential and decent staking rewards, Metacade emerges as a clear potential winner.
As mentioned, its presale has been performing exceptionally well recently. Over $7.7m of tokens have been sold 14 weeks after the presale’s launch, with thousands of investors already on board. The MCADE token is currently on sale for $0.0155 in stage 5 of presale, but it’s not expected to stay at this price for much longer.
If you’re looking for one of the best cryptos to stake that has excellent profit potential, then do yourself a favor and check out the MCADE presale. As GameFi heats up in 2023, MCADE could easily 10x or more as the community rapidly swells in size. Don’t miss out on this first-class investment opportunity to get in early with what could be one of GameFi’s biggest tokens.
You can participate in the Metacade presale here.
Disclaimer: Insights provided by crypto industry players and is not a part of the editorial content of BanklessTimes.
