Staking
Last Updated: October 30, 2026
Quick Answer: Staking is the process of locking or delegating cryptocurrency to help secure a proof of stake blockchain, in return for rewards paid in that network’s token. Validators put up a stake as collateral, propose and confirm blocks, and can lose part of it if they break the rules. Ethereum is the largest staking network: when checked on October 30, 2026, the staking page on ethereum.org displayed about 43.9 million ETH staked, roughly 35% of supply, and a reward rate near 2.5% a year (the page does not say when these figures were last refreshed).
Key Takeaways
- Staking replaces mining in proof of stake blockchains: the right to validate comes from locked tokens instead of computing power
- Rewards come from newly issued tokens and transaction fees, and are not guaranteed; validators that go offline or misbehave earn less or are penalized
- On Ethereum, a validator needs at least 32 ETH and, since the Pectra upgrade of May 7, 2025, can hold up to 2,048 ETH
- Users can stake alone, delegate, join a pool or liquid staking protocol, or use an exchange; each option changes who holds custody
- Liquid staking protocols held about $35.8 billion on October 30, 2026, according to DefiLlama
How Staking Works
In a proof of stake network, a validator is a node that has locked tokens with the protocol. The network picks validators to propose new blocks and others to vote, or “attest,” that those blocks are valid. Honest work earns rewards. Provable cheating, such as signing two conflicting blocks, leads to slashing: according to ethereum.org, “part of the validator’s stake is destroyed and the validator is forcibly removed from the network.” Validators that are simply offline lose small amounts instead.
The stake works like a security deposit: attacking the network would require controlling a large share of all staked tokens and risking their loss.
Most holders delegate tokens to a validator, which shares rewards after a commission. Rules differ by network:
- Ethereum: a solo validator needs 32 ETH. Since Pectra activated on May 7, 2025, EIP-7251 lets one validator hold up to 2,048 ETH, so large stakers can run fewer validators. Withdrawals pass through an exit queue.
- Cardano: holders delegate ada to a stake pool. The official site says “there is no lock-up” and ada “remains spendable at any time,” with rewards paid each epoch.
- Solana: holders delegate SOL to validators; returns depend on inflation, total SOL staked and validator uptime and commission, according to solana.com.
Ways to Stake
| Method | Who holds the keys | Typical minimum | Main risk |
|---|---|---|---|
| Solo staking | You | Network minimum (32 ETH on Ethereum) | Technical errors, slashing, downtime |
| Delegated staking (staking as a service) | You keep withdrawal control; operator runs the node | Varies | Operator misbehavior or downtime |
| Pooled or liquid staking | Smart contract or pool operators | Some pools accept 0.01 ETH | Smart contract bugs, token losing its peg |
| Exchange staking | The exchange | Often very low | Custody risk, exchange failure, fees |
Based on the staking options described on ethereum.org.
A staking pool combines deposits from many users. Liquid staking also gives users a tradable receipt token, such as Lido’s stETH.
Examples: Staking in 2026
Ethereum. At CoinGecko’s ETH price of about $2,226 on October 30, 2026, the 43.9 million staked ETH displayed on ethereum.org that day was worth roughly $98 billion. Live price data is on our Ethereum price page.
Lido. Lido, the largest liquid staking protocol, had about $20.3 billion in total value locked on October 30, 2026, according to DefiLlama. At the same ETH price that equals roughly 9.1 million ETH, or about a fifth of all staked ETH.
Liquid staking and restaking. DefiLlama’s category data showed about $35.8 billion in liquid staking protocols and about $8.0 billion in restaking protocols on October 30, 2026. Restaking reuses staked assets to secure additional services, adding slashing conditions.
How to Compare Staking Options
There is no single best coin or platform for staking, and advertised rates change often. Points worth comparing:
- Where rewards come from. Rewards paid from new token issuance dilute holders who do not stake. Solana’s official site says yields are based on the current inflation rate.
- Lockups, slashing rules and validator commission.
- Custody and fees when staking through an exchange or liquid staking protocol.
In CoinGecko’s proof of stake category on October 30, 2026, the largest assets by market cap were Ethereum, BNB, Solana, TRON, Hyperliquid and Cardano. That day, ethereum.org displayed a reward rate of about 2.5% a year, while solana.com explained how yields are set without stating a figure.
Regulation and Taxes
In the United States, the SEC’s Division of Corporation Finance said in a staff statement on May 29, 2025 that protocol staking, including solo staking, delegating to a third party and some custodial arrangements, does “not involve the offer and sale of securities.” The view is non-binding. For taxes, the IRS ruled in Revenue Ruling 2023-14 that staking rewards count as gross income at fair market value once the taxpayer gains “dominion and control” over them. Rules differ in other countries.
Risks and Common Misconceptions
“Staking yield is guaranteed interest.” It is not. Rewards depend on network rules, how much is staked and validator performance, and they are paid in a token whose price can fall faster than rewards accumulate.
Lockups and slashing. Some networks require waiting periods to unstake, and on some networks delegators can lose part of their stake if their validator is slashed.
Custody and smart contract risk. Exchange staking means trusting the exchange; liquid staking means trusting smart contracts and the peg of the receipt token.
Related Terms
- Proof of stake (PoS): the consensus model that staking secures
- Slashing: the penalty for provable misbehavior
- Staking pool: a shared stake that lets small holders participate
Frequently Asked Questions
What is staking in crypto?
Staking is locking or delegating tokens to help run a proof of stake blockchain. Validators use the staked tokens as collateral while they propose and confirm blocks, and the network pays rewards in its own token. If a validator breaks the rules it can lose part of its stake, which gives participants a financial reason to behave honestly and keep the network secure.
How much can you earn from staking?
Rewards vary by network and change over time. On Ethereum, the official staking page displayed a reward rate of about 2.5% a year when checked on October 30, 2026. The rate depends on how much is staked in total, validator performance and fees charged by pools or exchanges. Rewards are paid in tokens, so their value in dollars rises and falls with the token price.
Is staking safe?
Staking carries several risks. The token’s price can fall, funds may be locked or stuck in an exit queue, and validators can be slashed for misbehavior. Staking through an exchange adds custody risk, while liquid staking adds smart contract risk and the chance that the receipt token trades below the value of the staked asset. No staking reward is guaranteed.
How much ETH do you need to stake?
Running your own Ethereum validator requires at least 32 ETH, and since the Pectra upgrade in May 2025 a single validator can hold up to 2,048 ETH. Smaller holders can join pools or liquid staking protocols, some of which accept as little as 0.01 ETH, or use an exchange’s staking service, each with different custody and fee arrangements.
Are staking rewards taxed?
In the United States, IRS Revenue Ruling 2023-14 says staking rewards are included in gross income at their fair market value when the taxpayer gains control over them, including when staking through an exchange. The ruling does not cover what happens when those tokens are later sold. Tax treatment differs from country to country, and official guidance from the relevant tax authority is the main reference.
Which crypto has the highest staking rewards?
Very high advertised staking rates usually come from networks with high token issuance or from platforms adding promotional rewards. A high rate paid in a token whose supply grows quickly can still lose value in dollar terms. Comparing the reward rate with the network’s inflation, the token’s liquidity and the platform’s custody and fee terms gives a clearer picture than the headline percentage.
Data sources: ethereum.org staking and Pectra pages (checked October 30, 2026), DefiLlama protocol and category data (October 30, 2026), CoinGecko ETH price (October 30, 2026), cardano.org, solana.com (checked October 30, 2026), CoinGecko proof of stake category (October 30, 2026), U.S. Securities and Exchange Commission staff statement (May 29, 2025), IRS Revenue Ruling 2023-14.