Solana

Osmosis

Algorand

Cosmos

The average crypto staking reward is now 450% higher than the average dividend paid to investors in the S&amp;P 500 despite strong growth across both markets.&nbsp;
On March 31, the S&amp;P 500 — the index that tracks the 500-largest public companies in the United States — recorded its best first-quarter growth performance in five years at 10.16%, per Google Finance <a href="https://www.google.com/finance/quote/.INX:INDEXSP?sa=X&amp;ved=2ahUKEwjB9I2qpKWFAxXgxzgGHZy1Ak0Q3ecFegQILxAX" target="_blank" rel="noopener nofollow">data</a>. 
However, its average dividend yield rate of 1.35% was the lowest recorded since roughly two and half years prior in Q4 2021. Notably, this represents a difference of 0.23% from the all-time low of 1.12% recorded 24 years ago, during the first quarter of 2000.
Meanwhile, crypto staking — which involves locking up one’s cryptocurrency holdings to earn interest or rewards — currently pays out an annual return average of 6.08%, according to the benchmark reward <a href="https://www.stakingrewards.com/" target="_blank" rel="noopener nofollow">rate</a> on Staking Rewards.
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 Source: <a href="https://x.com/charliebilello/status/1775216924508471754?s=20" target="_blank" rel="noopener nofollow">Charlie Bilello</a>
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The S&amp;P 500 dividend yield is the average dividend payout of all the individual stocks within the index. Of the three largest S&amp;P 500 companies, Microsoft recorded the largest dividend yield of 0.71%, followed by Apple with 0.56% and Nvidia Corp with 0.02%.
Of the top 100 cryptocurrencies, Algorand (<a href="https://cointelegraph.com/algorand-algo-price-index">ALGO</a>) is currently paying the highest staking reward rate of 84.19%, followed by Cosmos (<a href="https://cointelegraph.com/cosmos-price-index">ATOM</a>) at 17.17% and Filecoin (<a href="https://cointelegraph.com/filecoin-fil-price-index">FIL</a>) at 16.34%.
However, high-yield staking carries risks since assets are often locked up, meaning that investors may be unable to liquidate <a href="https://cointelegraph.com/news/ethereum-merge-made-network-more-centralized">even if the value of the underlying asset were to decline</a>.
Related: <a href="https://cointelegraph.com/news/ethereum-restaking-has-hidden-risks-coinbase-report">Restaking could introduce ‘hidden risks’ to Ethereum — Coinbase</a>
Institutional investors are starting to take note of the substantial difference between crypto staking rewards and dividend yields.
On March 30, Cointelegraph reported that Grayscale Investments had launched an <a href="https://cointelegraph.com/news/grayscale-investments-dynamic-income-fund-gdic-crypto-solana-polkadot">investment fund tailored to sophisticated clients</a> — in a bid to expose their portfolios to income generated from staking cryptocurrency tokens.
Grayscale named three proof-of-stake-based tokens that will be held in the fund: Osmosis (OSMO) has a 24% share, Solana’s SOL (<a href="https://cointelegraph.com/solana-price-index">SOL</a>) has 20%, and Polkadot’s DOT (<a href="https://cointelegraph.com/polkadot-price-index">DOT</a>)&nbsp;has 14%, while 43% is categorized under other tokens.
Grayscale is also one of a handful of asset management firms — including ARK Invest and&nbsp;<a href="https://cointelegraph.com/news/fidelity-files-s-1-application-us-sec-spot-eth-eft-staking">Fidelity Investments</a> — to seek approval from the U.S. Securities and Exchange Commission to be able to stake Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>) as part of its Ethereum ETF fund, should it be approved this year.
Magazine: <a href="https://cointelegraph.com/magazine/bitcoin-etf-coinbase-honeypot-hackers-government-trezor-ceo/">Bitcoin ETFs make Coinbase a ‘honeypot’ for hackers and governments: Trezor CEO</a>

Crypto staking rewards are now 450% higher than S&P 500 dividends

Cointelegraph

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