Staking Yields Drop as Restaking Interest Grows
Real staking returns decline across major chains as institutional restaking gains momentum despite risks.
- Solana’s real staking yield falls to 2.4%, Sui and Aptos turn negative.
- Institutions show growing interest in restaking strategies.
- Challenges persist around risks, rewards, and sustainability.
Falling Yields Across Top Blockchains
Real staking yields are on the decline across several major blockchain networks. According to data from P2P Validator, Solana’s real return has dropped to just 2.4%, while Sui and Aptos have seen their yields fall into negative territory. These figures reflect yields adjusted for inflation, which gives a more accurate view of actual earnings from staking.
This shift highlights a broader trend across the crypto ecosystem: staking is becoming less lucrative for retail investors, especially as token inflation and market conditions eat into profits. As staking rewards fall, it becomes harder for holders to justify locking up their assets for long periods.
Institutions Eye Restaking Despite Challenges
Interestingly, even as yields drop, institutional players are increasingly turning their attention to restaking — a strategy that allows staked assets to be reused in additional protocols for further yield. This approach is gaining traction despite the layered risks it introduces.
Restaking appeals to institutions looking to maximize returns on otherwise idle staked assets. However, this practice comes with significant complexity and systemic risk, as it can expose participants to multiple layers of smart contract and slashing risks.
Experts warn that without proper risk controls, restaking could become a double-edged sword. But for now, it appears the yield-hungry institutions are willing to explore the space as long as the reward potential justifies the risk.
Is Sustainable Yield a Thing of the Past?
The current trend signals a potential shift in how yield is generated in the blockchain ecosystem. With native staking rewards decreasing and token inflation putting further pressure on returns, new mechanisms like restaking might be the next frontier — but they won’t come without scrutiny.
Retail participants may need to reconsider passive staking as a reliable income strategy, while institutions are likely to lead innovation in more complex yield structures.
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