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Cryptocurrencies staged a strong comeback this week after bottoming to their multi-month lows on Monday. Bitcoin recovered from a low of $49,000 to over $62,000 while the combined market cap of all coins jumped to over $2.2 trillion.
This rebound coincided with that of other assets like stocks. In the US, the Dow Jones added over 1,000 points, erasing the losses made on Monday. The same happened among other indices like the Nasdaq 100 and S&P 500.
In most cases, cryptocurrency investors make money in two ways: price action and staking rewards. Staking is a process where investors save their coins to secure a network and then make a reward each month. Liquid staking and restaking have become additional concepts in all this. This article looks at some of the best crypto to buy for their staking yields.
Mantra | OM
Mantra is the best cryptocurrency to invest in if you are interested in monthly returns. Data by StakingRewards shows that the cryptocurrency has a reward rate of 21.15%. All factors constant, if you invest $10,000 in Mantra, then you can receive over $2,100 as annual returns.
This trend explains why 50% of all OM tokens in circulation, worth about $945 million, have been staked. The other benefit of staking Mantra is that it does not have token unlocks, which are popular among other proof-of-stake coins.
A token unlock is a situation where more crypto tokens are brought to the market based on their unlock schedule. This is a difficult situation that leads to more dilution since most of the new tokens are invested in the staking pools. For example, Sandbox will unlock tokens worth $54 million or 9% of the total market cap next week.
Fundamentally, Mantra is an industry that is expected to grow rapidly in the next few years: Real World Asset (RWA) tokenization. RWA is a situation where a physical asset is tokenized and made available to investors.
Another icing on the case for Mantra is that its token has done well this year, rising by over 6,000% from its lowest point in December.
Injective | INJ
Injective is another good crypto to buy for its staking yield returns. It is a venture-backed network that counts Pantera and Mark Cuban as an investor. It is a layer-1 network whose goal is to make it easy for developers to build quality decentralized applications (dApps) in the financial services industry.
Fundamentally, Injective has not achieved its goal as it continues to lag behind other layer-1 blockchains like Solana, Ethereum, and Tron. The biggest parts of its ecosystem are platforms like Hydro Protocol, Helix, and Dojoswap.
On the positive side, Injective has a strong staking yield of 18.72% and has a staking ratio of 60%. In this, a $10,000 investment could bring in $1,800 in annual returns, a bigger figure than most dividend stocks.
Like Mantra, Injective has completed its token unlocks, lowering the chances of more dilution in the future. It also went deflationary earlier this year.
Cosmos | ATOM
Cosmos was one of the most popular projects in the blockchain industry. Its popularity was mostly because of its Inter-Blockchain Communication (IBC) protocol, which allows applications to communicate across most chains.
Cosmos has been used to build some well-known dApps in the blockchain industry. The most popular of them is Thorchain, a network that handles billions of transactions each month. It has also used to build Celestia, a leading player in the data availability network, dYdX, and Osmosis.
The ATOM price has crashed by over 88% from its all-time high of $45 in 2021 and by 61% from the year-to-date high. Still, the network has some solid fundamentals and a staking yield of 17.5% while all its tokens have been unlocked.
Polkadot | DOT
Polkadot is the other best crypto to stake, thanks to its 11.4% staking yield and 58.67% staking ratio.
Polkadot is a blockchain network whose goal is to simplify how developers build and scale their decentralized applications. According to its website, it has over $5 billion in staked economic activity, over 600 projects in its ecosystem, and an average of 448k active monthly active users.
Polkadot has changed a lot recently. For one, the developers have done away with the parachain auction process that hindered many developers from using the chain. Today, any developer can build and deploy a dApp within hours.
Polkadot 2.0 has also introduced the Decentralized Futures program, which has given builders over $20 million in funding. They are also working to ensure that Polkadot is the best layer-1 network for all developers in all industries.
The other top cryptocurrencies to stake are Avalanche (AVAX), with its 8% yield, Solana (SOL), with its 7% reward rate, The Graph (GRT) with its 12% return, and Axelar (AXL), with its 8.4% reward.
To be clear: staking reward is just one of the few things you should consider when looking for a crypto to invest in. You should also look at a network’s technicals and its fundamentals.
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