The primary use case for staking blockchains is staking. That is their raison d’être, and thousands of cryptocurrency holders have utilized this provision to increase their holdings by earning staking rewards. As the total amount of staked tokens trends towards 80% for some blockchains, however, it raises questions as to what other utility these chains provide.

Also read: The Fallout From Onecoin’s Ponzi Scheme Continues to Impact Investors

Two Thirds of All Staking Coins Are Locked Up

The total market cap of all Proof of Stake (PoS) coins stands at $12.6 billion, of which $8 billion is locked up in staking wallets. Much of this occurs imperceptibly to cryptocurrency holders due to exchanges managing staking on their behalf. Store tezos on Binance, for example, and you will automatically be eligible for staking rewards. The top five staking networks by market cap have the majority of their circulating supply locked up: Tezos (77%), Cosmos (73%), Decred (51%), Synthetix (81%), and Waves (53%).

Everybody’s Staking But Who’s Using Proof of Stake Blockchains?
The amount of staked coins as a…

Click to continue reading on its source location…