Investors continually seek profitable opportunities in the cryptocurrency market, particularly within altcoins. Data from The TIE, a leading digital asset intelligence service provider, highlights five altcoins offering the highest staking rewards.
This is a critical factor for those investors who wish to maximize their investments by earning passive income on the altcoins they hold.
Altcoins generating high returns in January
Leading the pack is Energi (NRG), which boasts an astonishing 55.82% reward rate. Due to a market capitalization of $2.67 million and 24.9 million tokens staked, Energi presents an attractive opportunity. Furthermore, its network is supported by 516 active validators, ensuring robust security and operational efficiency. Although Energi has an inflation rate of 9.88%, its high rate of return remains a strong attraction for investors.
Evmos (EVMOS) follows closely behind, with a rate of return of 34.13%. This altcoin demonstrates a significant market capitalization of $25.82 million, with 235.6 million tokens staked. Evmos operates with 145 active validators, demonstrating the stability of its network. However, investors should keep in mind the high inflation rate of 24.19%, which could impact long-term returns.
The third contender, Comdex (CMDX), offers a reward rate of 29.62%. It has a market capitalization of $8.66 million and 115.67 million tokens staked. Thanks to 84 active validators, Comdex maintains a reliable network, balancing its inflation rate of 20.74%.
Read more: Cryptocurrency Staking: How to Stake Coins and Increase Your Income
In fourth position, Electronic Money (NGM) has a rate of return of 27.02%. Despite its market capitalization of less than $870,650 and 47.41 million tokens staked, e-Money operates efficiently with 65 active validators. However, its inflation rate stands at 10.00%, positioning it as a viable option for those looking for diversity in their portfolio.
Finally, rounding out the top five is THORChain (RUNE), which offers a reward rate of 22.79%. Its significant market capitalization of $516.08 million and 120.3 million tokens stationed make it an attractive option. With 92 active validators and a modest inflation rate of 4.40%, THORChain maintains a balance between reward potential and stability.
List of Altcoins with the highest staking reward
Altcoins via Staking Reward. Source: TIE
This analysis, based on the latest data from The TIE, offers a glimpse into the potential of altcoin staking. While high rewards are attractive, these should be weighed against other factors. These include network stability, validator activity and inflation rates to make well-rounded investment decisions.
Read More: 10 Best Cryptocurrency Staking Platforms You Can Trust (2024 Edition)
Previously, many projects have struggled to balance high stake rewards and inflation. For example, token inflation has been a major pain point for PancakeSwap (CAKE) holders.
“Please stop the high reward rates in staking. This type of APR is similar to Ponzi projects and scams, however, I know PancakeSwap is a great dex and project. 60% of the reward is a joke, that’s it,” community members noted.
For this reason, the PancakeSwap team has revamped tokenomics and cut the maximum offering by 40% in December 2023.
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