With Ethereum becoming a proof-of-stake blockchain network in 2022, the staking ecosystem in the crypto space has grown considerably. This PoS mechanism has opened doors for investors to start staking their ETH and earn rewards in return instead of simply just holding it.. Besides ‘native staking’ on Ethereum, there are now numerous options available to stake ETH & rewards in return.
In this blogpost, we will discuss 10 best centralized and decentralized Ethereum staking platforms that are currently in trend. We will focus on key metrics like TVL, liquidity, APYs, staking mechanism, minimum staking amount requirements, security, and more. Let’s delve into it & understand all in details.
Top 5 Centralized Ethereum Staking Platforms 2024
Below is the list of top centralized platforms for staking ETH. It includes leading crypto exchanges and centralized lending platforms.
1. Nexo
ETH Staking Reward – Up to 8% (5% ETH + 3% Additional Rewards)
Nexo is one of the popular crypto platforms that offer stalking for a variety of assets including ETH. Its user-friendly interface and ease of staking make it one of the best platforms to stake ETH and earn rewards.
Some of the primary benefits of staking ETH on Nexo is flexible amount limits, insurance on deposits, and instant availability of liquidity. However, its centralized nature remains the biggest barrier over staked ETH with limits on withdrawals. In addition, it does not offer services in a number of countries due to geographic limitations and regulatory issues.
Also Read: Nexo Receives Preliminary Approval in Dubai From VARA
2. ByBit
ETH Staking Reward – Up to 3.27% APR
Bybit has excelled as a top crypto exchange for trading crypto assets. It has global presence in over 150 countries while having over 30 million users. The exchange supports ETH 2.0 staking and offers packages for both stETH and mETH.
By staking ETH on Bybit, users could earn an Annual Percentage Yield (APY) of up to 7% while also using staked ETH derivatives – stETH and mETH – for trading. Bybit streamlines the process by converting ETH into stETH or mETH at the 1:1 ratio and accruing rewards on a daily basis. Bybit’s offering of Unified Trading Account, which is separate from Funding Account, enables traders to use stETH as collateral for trading, while keeping ETH staked.
3. Binance
ETH Staking Reward – Up to 4.49% APY
Binance is the biggest established cryptocurrency exchange platform, providing high-quality trading and investment services. As the largest exchange, Binance offers exquisite ETH staking service while rewarding users with up to 4.49% annual returns. Users can stake a flexible amount and can start with even 0.0001 ETH.
Binance has the largest user base with hundreds of crypto assets available for trading. Similar to other centralized ETH staking providers, Binance requires full asset custody for staking and users are required to create an account first with full KYC.
Also Read: How to Buy Bitcoin on Binance?
4. Coinbase
ETH Staking Reward – Up to 5.75% APY
Coinbase stands among highly reputable and user-friendly crypto exchange platforms. Staking ETH on Coinbase is an easy process which can be done by converting ETH into cbETH or rETH from the application. It offers up to 5.75% annual returns on staked ETH amount.
As being one of the most popular crypto exchanges, Coinbase offers a secured way to stake ETH. However, it has faced regulatory issues in the past due to staking offers where the US SEC claimed that Coinbase is allowing trading and staking of unregistered securities.
5. Crypto.com
ETH Staking Reward – Up to 2.3% APY
Crypto.com is a comprehensive cryptocurrency platform that offers various services, such as buying, selling, and staking crypto assets. It also offers crypto investment and staking solutions to businesses. The current standard rate of ETH staking rewards on Crypto.com is 2.3 APY, which is by far in a low tier but security provided by the platform is incomparable.
Being one of the earliest and a leading crypto platform, Crypto.com presents various features for staking with support to popular cryptocurrencies. Users could benefit from flexible staking periods, a user-friendly application, and diverse assets availability on Crypto.com.
That was all for the centralized ETH staking platform. Now let’s go through some of the most popular decentralized platforms which offer greater methods for staking ETH & earning passive yields.
Top 5 Decentralized Ethereum Staking Platforms 2024
1. Lido
Staking APR – 3.0%
Lido is the most popular DeFi protocol for staking ETH.. While allowing to stake any amount of ETH, Lido provides stETH as liquid token to be used in the DeFi ecosystem. It offers up to 3% annual yield which was the highest in the market.
Lido can be described as a pioneer for liquid staking in the crypto industry. Currently, there are $33.2 billion of ETH staked on Lido and its token stETH is supported by hundreds of DeFi protocols.
Read: What is Lido: Unleashing The ETH Liquid Staking Protocol
2. Rocket Pool
Staking APR – 2.38%
Rocket Pool is currently a leading decentralized finance protocol for ETH staking. It to liquid stake ETH and reward rETH to stakers in exchange for their deposits. rETH is liquid staking derivative token which occurs valu same as ETH and it can be used across various DeFi protocols to borrow funds.
According to data from DeFiLlama, Rocket Pool currently has a TVL of $4.18 billion and its second largest liquid staking protocol after Lido. While staking on Rocket Pools, users are also rewarded with RPL tokens, which can be used to govern the platform or could be redeemed as rewards. Rocket Pools also allow users to run personal mini pools with lower ETH requirements.
3. Frax
Staking APR – 3.78%
Frax stands out within the DeFi ecosystem with its innovative ETH staking solution which enhances yields and simplifies the staking process. While offering annual rewards up to 3.78% APR, Frax prioritizes security and seamless integrations in the DeFi space.
It has three main components – Frax Ether (frxETH), Staked Frax Ether (sfrxETH), and the Frax ETH Minter. Frax Ether (frxETH) removes the staking barriers of 32 ETH required for solo staking on Ethereum. The ETH pegged derivative, frxETH facilitates smooth integration into the Frax ecosystem. sfrxETH, representing yield-accruing frxETH, enable users to earn staking rewards when swapped back into frxETH.
4. StakeWise
Staking APR – 2.90%
Stakewise is a simple and open-source ETH staking platform where users can stake any amount of ETH to help secure the Ethereum network while earning rewards in exchange. On staking ETH at Stakewise, users receive sETH2 in return which can be used to unlock more yields in Ethereum’s DeFi ecosystem.
It currently offers 2.90% APR on ETH staking. Moreover, developers can use Stakewise APIs and other tools to integrate ETH staking in their own dApps. Stakewise has accumulated over 100,000 ETH in deposits since its launch.
5. Mantle LSP
Staking APR – 3.39%
Mantle liquid staking protocol (LSP) is a non-custodial ETH staking platform built on Ethereum. The unique feature of this Liquid staking protocol is it offers the highest yield among all other protocols with a target yield of 7.2% and an average market yield of 4%. Mantle offers mETH to users in return for staking ETH. It utilizes MEV opportunities and generates yield to share with all the mETH holders.
Conclusion
Instead of just holding assets like ETH, users can maximize their potential by staking it and earning yields on it. There are currently a variety of staking platforms available in the market and above listed platforms are most populars in the category of centralized and decentralized. While all these platforms enables one to unlock passive income on ETH holdings, it also needs to be said that they might fall short when it comes to asset security. When choosing the best platform, risk tolerance is a crucial element rather than going for highest possible yields. Before staking, users must need to inquire about the staking provider’s security aspects and risk assessment to make sure that assets are safe.
