The average annual yield offered by crypto staking programs is about five and a half times higher than the average dividend payout offered by the largest U.S. public entities. 

taking 450% More Profitable Than S&P 500 Dividends

The S&P 500 Index recorded a 10.16% gain in Q1 2024. This is the best performance in the last five years, according to Google Finance data. The average dividend yield of companies whose shares are included in the S&P 500 basket amounted to 1.35%, the lowest since Q4 2021, Charlie Bilello, Chief Market Strategist at Creative Planning, reported.

The S&P 500 is a stock index that tracks the prices of the 500 largest publicly traded U.S. companies.

Meanwhile, Stake Rewards reported that the average annualized return on crypto staking protocols is 6.1%, over 450% higher than the dividend yield of companies of the S&P 500 Index. 

The following projects offer the most considerable staking rewards: 

  • Algorand (ALGO) — 84.19%; 
  • Cosmos (ATOM) — 17.17%; 
  • Filecoin (FIL) — 16.34%.

However, staking is generally a high-risk investment, as staked assets remain locked for a predetermined period of time. In conditions of high volatility, as well as in case of hacking attacks and technical failures, which may lead to depreciation of the underlying asset, investors can’t promptly withdraw funds from staking. To some extent, these risks and the low liquidity of the staked assets are compensated for by the development of restaking protocols. Institutional investors assessed this sector’s prospects, among others.

Author: Evgeny Tarasov
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