Solana Real Staking Yield Dips to 2.4% as Sui and Aptos Turn Negative

Real staking yields across major blockchain networks are experiencing a significant decline, with Solana's real return dropping to 2.4%. Meanwhile, emerging chains Sui and Aptos have seen their real staking yields turn negative, according to research from P2Pvalidator, as highlighted by a recent CoinTelegraph tweet. This trend signals a shift in the profitability of passive income generation for many cryptocurrency participants.

The reduction in real staking yields, which account for token inflation, presents a less attractive prospect for retail investors seeking consistent returns. While nominal annual percentage yields (APYs) might appear higher, the actual purchasing power of rewards diminishes when the inflation rate of the underlying token outpaces the yield. This phenomenon is prompting a reevaluation of traditional staking strategies.

"⚡️ RESEARCH: Real staking yields are falling across major chains, Solana falls to 2.4% real return while Sui and Aptos turn negative. Per @P2Pvalidator, institutional interest in restaking is rising despite key challenges."

In stark contrast to the declining real yields, institutional interest in restaking strategies is reportedly on the rise. Restaking involves leveraging already staked tokens across multiple protocols to generate additional layers of yield. This advanced approach, while introducing increased complexity and risks such as smart contract vulnerabilities and potential slashing events, offers avenues for optimizing returns on otherwise idle staked assets.

For Solana, while nominal staking rewards from various platforms can range significantly (some reporting up to 13% APY), the inflation-adjusted figure paints a different picture of net earnings. Sui and Aptos, newer Layer 1 blockchains, are grappling with the challenge of maintaining attractive real yields as their ecosystems mature. The Aptos community, for instance, has debated proposals like AIP-119 aimed at reducing staking rewards to curb inflation, a move that could further impact validator participation and liquidity if not balanced carefully. This dynamic landscape underscores the evolving strategies required for yield generation in the cryptocurrency market.