Benzinga - With Bitcoin’s (CRYPTO: BTC) stellar 155% rally in the past six months having reinvigorated interest in the cryptocurrency space, investors are on the lookout for investing opportunities that could provide similar or more returns going forward.
This warrants a closer look at the altcoin space, with many token projects offering investors the opportunity to generate staking rewards along with the potential for further token price appreciation.
Adopting a medium to long-term HODL strategy with such altcoins and staking tokens in DeFi liquidity pools for additional staking rewards can provide investors with a higher return potential.
With this objective in mind, Benzinga looked through the crowded altcoin space to pick the most secure tokens investors could consider for passive income generation and long-term wealth creation.
Solana (CRYPTO: SOL): Having appreciated by ~170% in the past three months, the Solana token has been witnessing intense investor interest buoyed by the large number of meme coin projects listing on the Solana blockchain.
In terms of key metrics such as the total value locked (TVL), onchain volumes, fees and even market capitalization, the thriving Solana ecosystem is recording new highs and even surpassed Ethereum (CRYPTO: ETH) in terms of network activity over the March 17-18 weekend.
Investors can also delegate their Solana tokens to network validators in exchange for a 7.43% staking reward rate, with distribution taking place every epoch or about 2 days.
Notably, with Solana boasting a 64.78% staking ratio that accounts for a market cap of $73.78 billion, investors can expect to receive stable and secure rewards when staking their Solana tokens.
While prices are still below its previous all-time high (ATH) of $259.96 recorded on Nov. 6, 2021, the market capitalization of the token has already surpassed the previous record of $75 billion on account of new tokens added to the Solana network.
With the current meme mania bringing more users to the Solana platform and fuelling its network fees, it wouldn’t be surprising to see the token recording a new ATH in the foreseeable future, making a compelling case for investing in the native token.
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Polkadot (CRYPTO: DOT): Empowering Web3 interoperability by enabling cross-blockchain transfers of all types of digital assets, the Polkadot network has been unlocking unprecedented levels of economic and transactional scalability by virtue of its unique shared security standards.
As a result, the network managed to sustain strong onchain volume growth numbers, with monthly transactions of the native Polkadot token and interest in pooled staking scaling new highs since December 2023.
In fact, the native Polkadot token has risen by ~44% over the past three months, with investors increasingly locking their tokens in liquidity pools for a high staking reward rate of 11.92%.
This has played a significant role in Polkadot’s staking market capitalization crossing the $7 billion mark, with 51.2% of the total token supply being staked across different pools today. With the token trading more than 80% lower than its ATH of $54.98 that was last recorded on Nov. 4, 2021, value-conscious investors looking for high staking yields would probably do well to go long on the Polkadot ecosystem.
Cosmos Hub (CRYPTO: ATOM): Offering an even higher staking reward rate than the above two altcoins, the Cosmos Hub is another interesting blockchain project that should be on the radar of long-term crypto investors.
Employing a proof-of-stake (PoS) consensus mechanism, the Cosmos Hub network incentivizes token holders to stake its tokens with validators or staking pools, providing them with a staking reward rate of 16.67% in the form of more of its tokens.
Utilized in turn for maintaining security and decentralization standards, investors need to make do with a 21-day waiting period when unstaking their tokens, deeming staking on Cosmos Hub more favorable for long-term investors.
Yet, with a 63.25% staking ratio and a sizeable $2.87 billion staking market capitalization, the token offers a secure yet high-yielding passive income generation opportunity like few others.
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