CoinGecko named the top blockchain by assigning awards
CoinGecko has published a report analyzing the share production among the largest POS blockchain projects. The study analyzed yield, ratio and other performance metrics and found a wide range of viable strategies.
Cosmos, Polkadot and Tezos currently offer the highest yields, but other competitors may take their place.
CoinGecko's POS Analysis
CoinGecko, the popular crypto data aggregator, today released a new report on proof-of-stake (PoS) blockchains. The study looked at product size and ratio as well as network functions and other metrics. Based on this review, CoinGecko has determined that Cosmos (ATOM) offers the highest volume yield available.
Read More: Proof of Work vs Proof of Stock: Which is Better?
PoS consensus algorithms allow users to “lock” their tokens onto the blockchain network. These stake-held tokens are no longer fungible, but validate the network's transactions and keep it secure. Users reap rewards based on the amount of tokens they spend. However, as CoinGecko points out, actual returns can vary significantly.
“Storage production is shaped by many factors. Each blockchain's unique design affects rewards, with networks like Ethereum prioritizing security, while Solana focuses on speed. Token economics, such as how new tokens are created and the dynamics of supply and demand, play a significant role in determining stock yields, the report said.
As ATOM has dominated recent market gains, Kosmos' leadership makes sense for several reasons. As CoinGecko notes, more than half of its supply is currently in crisis. However, this is not the only sign of network functionality; Cosmos is also home to interesting projects. For example, it is hosting the first MiCA-compliant stablecoin.
A surprising variety of factors help explain the value of a token beyond the design capabilities mentioned above, such as security or speed. Although this causes problems behind the scenes, Polkadot offers high productivity. On the other hand, Tezos is different from the old POS. Protocols is one, and it focuses on a simple front-end experience and a loyal user base.
Read More: 9 Cryptocurrencies (APY) That Will Offer the Highest Stock Yields in 2024
Finally, the space in crypto accommodates many possible strategies. Ethereum and Sui have a 49-point difference in share ratio, but their yields are practically the same. In other words, there is no single formula that guarantees the best long-term investment for consumers.
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