New Report Shows Staking Adoption is Being Hindered by Lock-Up Requirements
NEW YORK, May 10, 2022 (GLOBE NEWSWIRE) — Liquid Staking Platform ClayStack has released the findings from its new State of Staking 2022 Report.
The findings come from a survey of 999 respondents who actively invest in proof-of-stake cryptocurrencies and hold more than $5,000 worth. Respondents were divided into three groups, split evenly between Europe, Asia, and the United States. The survey was conducted using PollFish.com.
Commenting on the findings, Mohak Agarwal, CEO of ClayStack, said: “The findings confirm our belief that for staking to reach mainstream adoption, users must not be forced to lock up their crypto in order to receive passive returns from staking. Staking must evolve in order to provide users the benefits of staking while also allowing them to participate in the DeFi ecosystem — this is where liquid staking comes in, which we believe is the future of liquid staking.”
Key Findings:
- Those who still don’t plan to stake won’t do so because of lock-ups, technical risk, and hacks. However, 45% would change their mind and be willing to stake if they had returns at 15% or higher.
- The most popular way to stake is by setting up their own validator node. Other popular ways to stake crypto include using a third-party staking service or through an exchange.
- Not wanting to lock-up their assets for a period of time is the top reason why respondents don’t stake. Other reasons include finding higher returns elsewhere and the inability to sell immediately if the market pumps.
- They would stake if there were higher returns. Other things that would need to change for them to want to stake include having a lower minimum amount needed to stake and clearer tax regulations around staking.
- Hacks are the major concern for staking. Other major concerns include market volatility risk, lock-ups or lack of liquidity, validator risk, and opportunity cost.
- 56% plan to stake in the next year, which includes those who haven’t before. Most intend on staking 20% to 30% of their portfolio, and most expect a 15% return for staking.
To download a full copy of the report, please click HERE.
About ClayStack
ClayStack is the next-generation blockchain-agnostic staking protocol that enables users to unlock the power of staked digital assets in the form of liquid staking derivative tokens. The ClayStack team consists of veteran blockchain professionals who have been part of this space since the launch of the early staking mechanisms. For more information, please visit www.claystack.com.
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Image 1: State of Staking 2022
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