Proof of Stake networks experience historic low in staking yields

Proof of Stake networks experience historic low in staking yields

The average staking yield of the top 35 stakable cryptocurrencies has reached a historic low due to the rising average stake rate among investors during the third quarter, according to a report from Staked, a non-custodial staking platform subsidiary of Kraken.
The average staking rate increase to a substantial 52.4% across proof-of-stake (PoS) networks led to a decline in the yield on these chains to 10.2%, the lowest ever rate.
For context, Ethereum (ETH), the largest PoS network, saw its Consensus layer yield drop to a low of 3.2% while the percentage of total supply staked assets increased to a record high of 22% during the third quarter. The decline was more pronounced in ETH’s Execution layer, dropping to 1.3%, according to Staked.
“The combination of a high stake rate, and transaction activity shifting from Mainnet (L1) to the various Ethereum Layer 2 networks (Ls), resulted in a Q3 staking yield of 4.5%, ETH’s lowest on record.”
While Ethereum staking saw a notable surg

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