Stake to earn profits: Top 10 largest Proof of Stake tokens in 2024

What is Proof of Stake and Why Is It Hot?

Proof of Stake (Proof of Stake - PoS) has become one of the most popular consensus mechanisms in the blockchain world. Unlike Proof of Work (PoW), which requires nodes to solve complex puzzles, PoS selects validators based on the amount of cryptocurrency they hold and are willing to stake. This offers two major advantages: significant energy savings and profit opportunities for participants through staking rewards.

In the context of an increasingly competitive cryptocurrency market, understanding what Proof of Stake is and how it works becomes extremely important. Smart traders are looking for PoS tokens with the potential to generate substantial passive income. This article will guide you through a list of the top 10 most prominent PoS tokens, each with its own features and competitive advantages.

Top Candidates for Staking in 2024

1. Solana (SOL) - Speed is King

Solana boasts one of the fastest processing speeds in the industry. This network can handle up to 65,000 transactions per second (TPS), thanks to its unique Proof of History technology. This allows for parallel processing of transactions without waiting for each block confirmation.

With staking rewards of up to 7.29%, SOL is reshaping the landscape of high-throughput blockchains. Holders of SOL can participate in the rapidly growing Solana ecosystem, including dApps and decentralized finance services.

Current Market Data:

• Price: $143.16
• 24h Change: -2.97%
• Market Cap: $80.93B

2. Ethereum 2.0 (ETH) - The Pioneer of Transition

Ethereum made a historic shift from PoW to PoS. This transition was not easy, but billions of ETH have been staked on the Ethereum 2.0 network, demonstrating community trust in its future.

Although a minimum of 32 ETH is required to become a validator, traders can still participate via staking pools or use services from other platforms to stake smaller amounts. ETH remains the second-largest cryptocurrency in the world and the foundation for most DeFi applications.

Current Market Data:

• Price: $3,320
• 24h Change: -1.81%
• Market Cap: $400.78B

3. Avalanche (AVAX) - The Network of Networks

Avalanche stands out with its unique subnet (subnet) mechanism, allowing the construction of custom blockchains within its ecosystem. This protocol combines the best features of traditional consensus models and Nakamoto, creating a solution that is both secure and energy-efficient.

The AVAX token plays a vital role in network security and transaction validation. Holders of AVAX can earn staking rewards of up to 7.60% and even delegate their tokens to other validators to share in the rewards.

Current Market Data:

• Price: $13.96
• 24h Change: -6.00%
• Market Cap: $6.01B

4. Polkadot (DOT) - The Blockchain Bridge

Polkadot is designed to solve the interoperability issues many blockchains face. Through sharding (splitting), Polkadot enables the processing of multiple transactions in parallel across different blockchains, increasing speed and efficiency.

Validators on the Polkadot network are chosen based on the amount of DOT they hold and can earn staking rewards of up to 12%. This is an attractive yield for investors who favor cross-chain interoperability.

Current Market Data:

• Price: $2.15
• 24h Change: -5.15%
• Market Cap: $3.56B

5. Cardano (ADA) - Research-Driven Approach

Cardano is renowned for its scientifically grounded development approach, with peer-reviewed research and comprehensive testing. Its Ouroboros protocol is designed to be energy-efficient while maintaining high security.

Recently, Cardano launched the Hydra protocol, enabling high throughput transaction processing and seamless communication between different blockchains. Stakeholders can earn rewards of up to 5.5% by staking ADA.

Current Market Data:

• Price: $0.40
• 24h Change: -5.85%
• Market Cap: $14.63B

6. The Open Network (TON) - The Telegram-Based Platform

Supported by the popular messaging app Telegram, TON is built to handle millions of transactions per second. To achieve this, TON uses a sharded version of PoS combined with the TON Virtual Machine, allowing separate management of the masterchain, workchain, and shardchain.

Toncoin (TON) is used not only for staking but also for various purposes such as paying gas fees, transfers, and blockchain governance. Its high performance makes TON an attractive choice for traders seeking speed and low costs.

Current Market Data:

• Price: $1.74
• 24h Change: -2.40%
• Market Cap: $4.24B

7. Algorand (ALGO) - Pure PoS

Algorand employs a pure PoS model, completely eliminating the need for mining pools or central authorities. This ensures the network remains highly decentralized and secure.

Using a binary Byzantine Agreement (BA) algorithm, Algorand can process up to 1,000 transactions per second. Validators are selected through a fair and transparent lottery system, with incentives to act honestly—if malicious actions occur, they lose their staked ALGO.

Current Market Data:

• Price: $0.13
• 24h Change: -5.81%
• Market Cap: $1.16B

8. Tezos (XTZ) - Decentralized Governance

Tezos is notable for its self-amending capability, allowing XTZ holders to vote and approve protocol upgrades directly. This community-based governance model creates a more democratic ecosystem for DApp development.

XTZ tokens can earn staking rewards of up to 6%. Tezos’ innovative governance approach and flexibility have made it a promising platform for developing next-generation smart contracts.

Current Market Data:

• Price: $0.58
• 24h Change: -1.52%
• Market Cap: $625.07M

9. Polygon (MATIC) - Layer 2 Solution for Ethereum

Polygon focuses on building and connecting scalable, Ethereum-compatible blockchain networks. By providing high-performance infrastructure, Polygon addresses speed and cost issues faced by Ethereum.

Holders of MATIC can earn staking rewards of up to 17%, offering a very attractive yield. Its ability to facilitate seamless asset and data transfer across different blockchains makes Polygon one of the most promising platforms today.

10. BNB - One of the Leading Tokens

BNB is the native token of one of the world’s largest trading platforms. It serves not only as a utility token for paying transaction fees but also opens up many other investment opportunities within its ecosystem.

Stakers of BNB can earn rewards of up to 20%, one of the highest yields on this list. Continuous expansion of services, including derivatives and margin trading, provides users with a wide range of financial products to interact with.

Current Market Data:

• Price: $939.30
• 24h Change: -0.67%
• Market Cap: $128.08B

How to Choose the Right PoS Token for You

When deciding which PoS token to stake, traders should consider multiple factors. First, evaluate the staking yield—how high it is and whether it’s stable. Second, look at the market capitalization and liquidity, as larger-cap tokens tend to be less volatile.

Third, understand the project’s technology and goals. Projects with clear development plans and strong communities often have better prospects. Finally, ensure you understand the technical requirements—some tokens require a high minimum stake to become a validator, while others allow participation through staking pools with smaller amounts.

Final Thoughts

What is Proof of Stake if you can earn profits? PoS tokens not only offer a more sustainable and efficient alternative to PoW but also provide profit opportunities for participants. The tokens listed above represent some of the top candidates among the fastest-growing blockchain platforms.

However, always remember that the cryptocurrency market is highly volatile. Before making any staking decisions, conduct thorough research, assess your risk tolerance, and consult with experts if needed. Staking is a great way to participate in the future of blockchain, but it also involves risks that you must understand fully.