Many people shun cryptocurrencies with proof-of-stake support. It is certainly true that a lot of those projects tend to get abandoned very quickly. New statistics confirm that the PoS market cap has now reached levels not seen since June of 2018.
Interest in Staking Returns
One has to acknowledge that the focus on currencies with proof-of-stake support is on the rise again. A prominent development, given the slump this industry has gone through since mid-2018. Whether this was due to crypto winter or other factors, remains to be determined. Another possibility is how a lot of PoS coins tend to get abandoned by developers, reducing their appeal altogether.
The concept of proof-of-stake is interesting, on paper. Holding coins in a wallet and earning passive rewards for doing so sounds appealing. However, there have been a lot of PoS coins that do not calculate rewards properly. Furthermore, some developers tend to keep a portion of the rewards for their own, and dump their holdings once tokens gain traction on exchanges.
A Shift is Happening
The number of legitimate PoS coins is a lot smaller compared to what one may think. Even so, things have certainly improved over the past few years. Thanks to projects such as Tezos, Algorand, Cosmos, EOS, Cardano, Dash, and others, there is good money to be made with staking. Moreover, these assets tend to look up significant amounts of value in the process.
Although there are still a ton of PoS coins today, not all of them will succeed. Some of these may even provide support for masternodes, allowing for bigger rewards and locking up more network value in the process. Once Ethereum unlocks its staking, it will be interesting to see what it does to the POS market cap as a whole.
PoS Market cap at $33 Billion Again
The ongoing growth of the PoS market cap has been significant. In December of 2018, the total value had dipped to just below $6 billion. A steep decline from the $70.6 billion achieved in January of the same year. Overcoming such a big dip is never easy, and it has taken the proof-of-stake industry quite some time to note growth again.
Most of this growth originated after mid-March of 2020. With all of the markets taking significant hits at the time, scooping up PoS coins cheaply became a lot more popular. Five months later, the total market cap of staked coins has surpassed $32.976 billion again. It is crucial to note that $17.117 billion is effectively locked in staking as of right now. This goes to show that a lot of projects are close to having 50% of their supply locked in staking.
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