After a tumultuous period marked by outages and high volatility, Solana has received a boost. The blockchain network has gained support from a major crypto exchange, Crypto.com, which has added on-chain staking for Solana.
The move will make staking SOL tokens more accessible to Crypto.com’s users, who can now stake their tokens without any technical knowledge. They can expect up to 5% annual percentage returns (APR) for staking their SOL tokens.
The integration of Solana staking on Crypto.com is a positive boost for the network, which has experienced optimistic technical advancements and macro factors. This move resulted in an 11% surge in Solana’s value on Tuesday. With over 70% of its tokens staked in 2022, Solana is among the most sought-after blockchains for staking.
The term “on-chain staking” can create confusion among crypto enthusiasts. It refers to the on-chain operation on proof of stake (PoS) blockchains, where token holders can give their tokens to validators who secure the PoS blockchain network. In return, validators distribute rewards to holders. On-chain staking is only available for PoS tokens, such as Ethereum, Solana, and Polygon. Stablecoins and proof of work (PoW) tokens don’t generate staking rewards.
In contrast, off-chain staking, better known as crypto lending or yield farming, involves transferring custody to a third party in exchange for potential returns. With the integration of Solana staking on Crypto.com, users can now easily participate in on-chain staking and potentially earn rewards.
