The market capitalization of all embedded cryptoassets reaches nearly $95 billion, with ETH and SOL at the top.
Ethereum (ETH) wins the trophy for the most staked crypto asset after the successful merger of the Beacon Chain consensus layer with the execution layer of Ethereum on September 15, 2022, data from StakingRewards.com shows.
The network with the second highest market capitalization in transactions is Solana at $12.7 billion. Close behind is Cardano with more than $11 billion, Binance Smart Chain with more than $5 billion, and Avalanche with about $4.6 billion in locked-up assets. Rounding out the top ten blockchains are Polkadot, Cosmos Hub, Tron, Polygon and Near Protocol. Of the top ten cryptocurrencies staked by market capitalization, Cosmos (ATOM) offers the highest return of 17.89%.
Staking, the process of locking up cryptocurrencies for an extended period of time to earn rewards, is also a way for transaction verifiers to try for a chance to add a new block to the blockchain. A deterministic algorithm selects the node that has staked the most cryptocurrency to verify transactions.
In contrast, mining involves competing for the chance to add a new block of transactions to the blockchain using an energy-intensive computing process that has raised concerns from many quarters, including the Biden administration.
Staking was introduced by blockchain developers Sunny King and Scott Nadal in a 2012 paper as a response to Bitcoin's high energy consumption.
Ethereum Leads Bets As It Tries To Become 'Healthy Money
At press time, Ethereum, the world's second-largest cryptocurrency by market cap, had 14,545,424 ETH staked with 430,080 validators and an annualized yield of 4.1% per year. According to analyst firm Nansen, most ETH currently staked are not profitable at current Ethereum prices. At press time, Ethereum was trading at $1,360.79, according to Coingecko.
Ethereum's recent migration from proof-of-work to proof-of-stake has brought about a change in the way cryptocurrency is issued and the possibility of cryptocurrency gaining "sound money" status by introducing a supply limit.
Since the merge, 3,095.12 ETH have been injected into the circulation source. An accompanying "fee" mechanism controls the supply by removing ETH from circulation. Fee burning was introduced in Ethereum Improvement Draft 1559 in August 2021.
Withdrawal of staked ETH to earn interest will only be possible after the Shanghai update in early 2023. Becoming a validator on the Ethereum network before the merge required a stake of 32 ETH. Staking pools also allowed aspiring validators to enter the race by contributing as little as 0.01 ETH.
Ethereum's migration to a proof-of-stake blockchain could mean the coin passes the Howey test, the main test used to judge whether an asset is a security, according to the chairman of the US Securities and Exchange Commission.
Several staking methods offered
Most staking cryptocurrencies offer different ways to get rewards for staking. Ethereum offers solo staking or running your own validator node. Staking as a service removes the burden of running a validator node but allows the participant to reap the rewards. Another option is the use of betting pools, where bettors are issued with so-called ERC-20 liquidity tokens representing their staked ETH.
Solana, the second largest staked cryptocurrency by market cap, offers delegated proof-of-stake where tokens are delegated to validators running nodes.
 & Solana (SOL) Become Most Staked Crypto Assets){kind=link}
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