Staking was once seen as one of the simplest and safest ways to generate passive income in the crypto universe. The logic seemed unbeatable: just lock your coins in the network, contribute to its security, and receive proportional rewards. However, in 2025, this game changed.
Lower earnings, new technologies like Liquid Staking Tokens (LSTs) and stricter regulatory rules are reshaping the market. To decide if staking is still worth it, one must understand this new scenario and adjust the strategy.
Would continuing staking still be the best way to think about passive income in crypto? That is what we will talk about in this article.
Yields: how are the main networks today
In the first years of popularization, it was common to see protocols offering double-digit APYs (annual percentage yield).
Today, with more mature networks and growing participation, returns have decreased — but it is still competitive when compared to traditional investments. Let's see how the situation is in some of the main ones:
Ethereum (ETH): after the Shanghai upgrade in 2023, which allowed withdrawals, the average rate ranged between 3% and 5% per year. The entry of large institutional validators increased competition, putting downward pressure on the APY;
Solana (SOL): continues paying 6% to 8% per year, but requires attention to volatility and the network's history of technical instability;
Cardano (ADA): maintains consistency with 4% to 6% per year through delegation to stake pools;
Other networks like Cosmos, Polkadot, and NEAR can offer between 9% to 18%, but the risk-return relationship is more sensitive, as less established tokens may experience sharp price drops.
The central point is that the nominal APY does not tell the whole story. The real return depends on the appreciation or depreciation of the asset — if the token drops 30% in a year, an 8% yield will not be enough to compensate.
It is important to take this into account because yield is also directly related to the price of a crypto. It is of no use to have a very high double-digit return if, due to structural problems affecting the project, the price is very low.
LSTs: staking with liquidity
One of the most relevant changes in recent years is the popularization of Liquid Staking Tokens (LSTs). By doing traditional staking, your funds are locked in liquidity until the end of the lock-up period, which can last days or weeks.
With LSTs, you receive a token that represents your staking position (for example, stETH from Lido or mSOL from Marinade). This token can be sold, exchanged, or used as collateral in DeFi protocols — all while continuing to generate rewards.
Advantages:
Flexibility to move capital without losing yield - because there is locked liquidity, but you continue to move the token that represents this staking;
Possibility to leverage the strategy, using LSTs in liquidity pools or lending platforms.
Disadvantages:
Tracking error risk: the LST may depreciate relative to the original asset;
Dependence on smart contracts, which may suffer failures or attacks.
For those already familiar with DeFi and understand how to assess smart contract risks, LSTs can be a way to improve capital efficiency. But for those who prefer simplicity, traditional staking is still more straightforward.
Restaking: the new frontier
In addition to LSTs, a growing concept is restaking — using staking assets as a basis to validate other networks or services, receiving additional rewards. Platforms like EigenLayer allow reusing ETH stake to provide security to other protocols.
This approach can increase total yield, but it also accumulates risks: if there is a problem in the secondary network, the investor may suffer penalties (slashing) even on the original stake.
We would say that, despite being different modalities, the risk of restaking is quite similar to that of LSTs.
Regulatory risks: what is on the radar
The growth of staking has caught the attention of regulators worldwide. And at this moment, we have movements happening in relevant markets.
In the United States, the SEC has already sued companies for offering staking to retail clients without registration. In some cases, the platforms were forced to shut down the service.
In the European Union, the MiCA regulation brings guidelines for exchanges and staking providers to follow standards of transparency and security.
Impacts for the investor:
Possibility of restrictions by country, limiting access to certain services;
Tax obligations, as in many jurisdictions rewards are taxed upon receipt;
Need to choose platforms that comply with local regulations to avoid legal risks.
On the other hand, it is worth noting that regulation can also be an opportunity: once a market regulates a new class of assets, it becomes available to all people in a certain jurisdiction. In other words: it is much more an expansion from the demand side than a restriction of activities.
Why staking is still worth it
Even with lower yields and stricter rules, staking remains relevant for those who:
Have a long-term vision for the asset you are locking up;
Seek passive income linked to a solid project;
Want to contribute to the security and decentralization of the network.
Staking is also a central piece of the Proof of Stake model: without it, the network loses security. By participating, the investor not only seeks profit but also strengthens the ecosystem.
Best practices for 2025
To leverage the potential and minimize risks in Staking, it is worth following some guidelines:
Diversify: combine traditional staking and LSTs; distribute among different networks;
Research the validator: high uptime, low fees, and a solid history are essential;
Know the lock-up: periods vary depending on the network and may affect your liquidity;
Monitor the market: APYs can change rapidly, especially in volatile tokens;
Be careful with unrealistic promises: returns much above average often hide high risks or fraudulent schemes.
The secret is to balance security and opportunity
Staking in 2025 is no longer the 'gold mine' of years past, but it remains a consistent strategy for informed investors. The secret is to combine security and efficiency: choose reliable networks, assess the regulatory landscape, diversify, and take advantage of tools like LSTs and restaking responsibly.
With these precautions, staking remains a solid way to generate passive income and actively participate in the future of decentralized finance.
And you, if you are not staking yet, are you thinking of doing so after reading this article?
#staking #earn #rendapassiva #BinanceHODLerDOLO
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