The pledge share of Cardano and Polkadot has increased, and these two networks continue to dominate the ranking of pledge value.
According to the data of StakingRewards, Cardano is currently the network with the highest pledge value in the blockchain, and approximately US$26.4 billion worth of ADA has been allocated to ensure the security of the network. Cardano’s total market value is 36.6 billion U.S. dollars, and 73% of the circulating ADA is pledged.
StakingRewards estimates that Cardano’s pledgers receive 7.22% of the reward each year.
The second largest crypto asset by pledge value is Polkadot, which has locked DOT worth US$22.7 billion, accounting for 64% of its circulating supply. The average annual pledge reward of DOT is estimated to exceed 13%.
Cardano and Polkadot currently account for 7.9% of the total amount of USD 620.6 billion pledged in the entire crypto asset field.
Although Polkadot and Cardano have long dominated the staking field by locking in value, the recent rankings of other major assets have also undergone significant disruptions.
Solana has now surpassed Eth2, occupying the third place with $9.4 billion pledge funds. SOL pledge and verification requires assets to be locked up and out of circulation, which may explain this difference and why its pledged capital exceeds its market value of approximately US$8 billion. SOL pledgers can get 11% of the income every year.
Tezos, once the “king of pledges”, has fallen to the 11th place, with a pledge of US$3.5 billion and an annual yield of 5.5%. In mid-December 2020, according to a report by Cointelegraph at the time, Tezos ranked fourth.
In terms of total market value, according to Coinecko’s data, XTZ’s total market value has fallen from the top ten to 36th.
Currently, Eth2 ranks fourth with $8.2 billion in pledged assets. According to data from the ETH2.0 release platform, there are 3.9 million ETH locked in the beacon chain deposit contract. However, only 3.4% of the circulating ETH is allocated to the pledge, which shows that the upper limit of Eth2’s pledge still has a lot of room for growth.
Although the current annual rate of return of ETH pledgers exceeds 7%, as pledgers begin to collect fees from the Ethereum Virtual Machine (EVM), the upcoming chain merger of Ethereum is expected to significantly increase rewards.
Eth2 researcher Justin Drake predicts that as the chain merges, the pledge reward will at least double, and it is estimated that the annual reward may jump to 25%.
The pledge reward may at least double with the EVM gas fee
After the merger, I expect the pledged annual yield to be approximately 25%
More rewards → more pledges → more economic security
–JustinÐrake (drakfjustin) April 19, 2021
Other networks in the top ten are Avalanche, Algorand, USDC, Terra, Binance Smart Chain and Tron.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.