Solana and Cardano are arguably Ethereum’s deadliest competitors.
Solana’s blistering-fast throughout of 720,000+ transactions per second threatens to disrupt high-frequency Wall Street systems with a faster and decentralised order book. Meanwhile, Cardano is the crypto industry’s most prolific science coin.
Both chains share a common trait — neither are EVM-compatible. Built from the ground up, Solana and Cardano hold the conviction their technologies can leapfrog the current de facto smart contracts leader.
As a result, both SOL and ADA attract a strong retail and institutional investor base keen to grow and HODL their bags.
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In this article, I’m going to compare the different ways to earn a good yield on your hard-earned SOL.
This includes delegating your stake from popular Web3 wallets like Phantom with one of Solana’s 1,600 validators. You own your private keys and control your crypto.
You can also stake your SOL on a centralised exchange. The best returns are on Binance.
Finally, you can save your SOL in a crypto interest account. The main players here are Crypto.com, BlockFi, Celsius and Nexo. This isn’t staking, but you’ll get to earn a yield and grow your SOL. Passive income, no less.
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I'm a seasoned cryptocurrency and blockchain enthusiast with a deep understanding of the evolving landscape of decentralized technologies. My expertise extends to the intricate workings of various blockchain platforms, smart contracts, and the broader implications of decentralized finance (DeFi). Over the years, I've actively engaged with the crypto community, staying abreast of the latest developments, and have a comprehensive grasp of the technologies driving the industry forward.
Now, diving into the content of the article, "Best APYs and Top Platforms Compared!," authored by Col Jung on April 6, 2022, the piece revolves around the comparison of Solana and Cardano, both considered formidable competitors to Ethereum. The article highlights their unique features, such as Solana's impressive throughput of 720,000+ transactions per second and its potential impact on disrupting high-frequency Wall Street systems. Cardano, on the other hand, is lauded as the crypto industry's most prolific science coin, emphasizing its commitment to scientific principles in its development.
The common thread between Solana and Cardano is their non-EVM compatibility. Both chains are built from the ground up, with the belief that their technologies can surpass Ethereum as the de facto smart contracts leader. This conviction attracts a robust retail and institutional investor base to both SOL (Solana) and ADA (Cardano), with an emphasis on long-term holding (HODL).
The article then shifts its focus to strategies for earning a good yield on Solana (SOL). The author discusses three main methods:
Delegating Stake through Web3 Wallets: Users can delegate their SOL stake using popular Web3 wallets like Phantom to one of Solana's 1,600 validators. This approach allows users to retain ownership of their private keys and maintain control over their crypto.
Staking on Centralized Exchanges: Another option is staking SOL on centralized exchanges, with Binance highlighted as offering the best returns in this context.
Crypto Interest Accounts: The article also explores saving SOL in crypto interest accounts, with prominent platforms mentioned including Crypto.com, BlockFi, Celsius, and Nexo. While this isn't traditional staking, users can earn a yield and see their SOL grow, providing a source of passive income.
The content concludes by encouraging readers to follow the author on YouTube for regular updates on Solana and passive income-related content. This article effectively combines an overview of the competitive landscape in blockchain, specific insights into Solana and Cardano, and practical guidance on earning yields with Solana.
This means that, on average, stakers of Solana are earning about 5.12% if they hold an asset for 365 days. The reward rate has not changed over the last 24 hours. 30 days ago, the reward rate for Solana was 5.20%. Today, the staking ratio, or the percentage of eligible tokens currently being staked, is 65.08%.
The non-custodial hot wallet is available on Android and iOS, as well as a browser extension for Chrome, Brave, Firefox, and even Edge if you're still living in 2005.
Historically, staking Solana has yielded returns around 5.5%. Your reward rate may vary based on the platform you choose. Phantom and Solflare are popular decentralized options, while Coinbase is a great choice for users looking to stake through a centralized platform.
There is no lock up period on Solana staking. You can stake and unstake at any time. However, please note that the processing time to unstake SOL takes approximately 3 days. Which network can I use to deposit Solana?
There is no strict minimum amount of SOL required to run a validator on Solana. However in order to participate in consensus, a vote account is required which has a rent-exempt reserve of 0.02685864 SOL.
Since validators earn more rewards the more stake is delegated to them, they may compete with one another to offer the lowest commission for their services. Although this is not implemented in the Solana protocol today, in the future, delegators could risk losing tokens when staking through a process known as slashing.
By delegating your Solana to a validator such as Ledger by Figment, you will receive rewards for helping to secure the network. The current annual yield on Solana is around 5%, minus the validators' commission rate.
Thus, Ledger is the most secure option for staking your SOL. Here's how you can use Ledger Live to start your staking journey easily: Connect your Ledger device and open the Solana app on your device. Next, go to the Ledger Live app, navigate to the “Accounts” tab, and select your Solana account.
Yes, you can lose your staked Solana through a process called slashing, in which a portion of the stake can be removed and destroyed in response to malicious behaviour. This means there is a risk of losing your tokens if the validator you delegate to acts maliciously.
Staking: This process involves locking up your tokens in order to secure the network and earn rewards. Users can earn SOL by staking SOL or other cryptocurrencies. Content creation and curation: Many Solana-based platforms reward users for creating and curating valuable content.
Daily validator fee: Although Solana does not have a minimum staking requirement, validators must pay a fee of 1.1 SOL per day. Any potential validator should weigh this cost vs how much SOL they have available to stake.
Phantom stands out as the preferred choice for staking SOL due to its compatibility, simplicity, and security. The wallet offers a seamless staking process integrated directly into its interface. It also provides versatile options to swap tokens, store NFTs, and interact with Solana's DeFi ecosystem.
Staking Solana (SOL) allows you to "vote" for the validator you trust, and the more votes a validator has, the more weight it has in the consensus process. As a reward, you receive a staking yield based on the amount you have staked.
Examples include Ethereum, Cardano, and Solana. Which coin has the highest ROI from staking? BNB has the highest real reward rate of all the cryptocurrencies listed in this article. While some cryptocurrencies offer higher nominal staking rewards, you should take into account inflation to determine 'real reward rate'.
Returns/yield for staked tokens is based on the current inflation rate, total number of SOL staked on the network, and an individual validator's uptime and commission (fee). Solana's initial inflation rate is 8% annually, decreasing by 15% year-over-year, reaching a long-term fixed inflation rate of 1.5% annually.
You are depositing your cryptocurrency with a blockchain, much like depositing your dollars with a bank. And, in exchange for doing so, you are paid a specified reward rate, usually expressed in terms of an annual percentage yield (APY). For most cryptos, these APYs range from 2% to 10%.
Consequently, validators' total annual income ranges from 0.577% to 0.997% of their total staked amount. In the broader financial context of the Solana network, users generate substantial fees amounting to approximately $189M per year, comprising 1.66M SOL in priority fees and 140K SOL in base fees.
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