Imagine your dog working every day to create money that goes into your bank account. While it may appear to be a fantastic opportunity, it is also a remote possibility.
However, there’s a scenario that is at least somewhat comparable that represents genuine potential. Replace “dog” with the “dog-inspired meme coin.” Here is the amazing amount of passive income you can earn staking Shiba Inu tokens in total.
This dog will hunt
What is staking? Simply put, it’s a way to earn rewards for being an early investor in the project. We’ll get to the financial compensation later. Let’s first address an essential question: what exactly is staking?
Staking is a method of earning cryptocurrency rewards by committing funds to a blockchain. Your tokens are then utilized to help the underlying blockchain verify transactions. The issue is that the given blockchain must employ the proof-of-stake consensus algorithm, rather than the proof-of-work protocol.
When it comes to staking, you may believe that the ancient saying “this dog won’t hunt” is correct for Shibas. After all, the token is based on the Ethereum (ETH -6.84%) blockchain, which uses proof-of-work technology.
However, the Ethereum network is in the midst of a significant upgrade to move to a proof-of-stake consensus mechanism. The Beacon chain is already up and running, bringing staking capabilities to the Ethereum ecosystem. Merge of the Beacon chain with the ETH mainnet is planned for this year, allowing all users of Ethereum to stake.
Digging up dollars
The bottom line is that, yes, Shiba Inu tokens may be staked. And you can make a decent profit doing so.
Binance currently has the highest annualized yield. The amount displayed is for a 120-day lockup period. Binance also provides an option that only needs a 10-day lockdown and generates a yearly return of 10.12%.
Shiba Inu appears to have the worst staking potential among the coins we reviewed. You may currently earn an annualized return of 3% in exchange for putting your tokens away for three months.
ShibaSwap’s conditions are the most complicated of all three exchanges. You must keep 67 percent of your staked tokens locked for six months. The cryptocurrency exchange, on the other hand, allows you to receive weekly bonuses on the remaining 13%.
Shiba Inu staking is a little more complicated than other cryptocurrencies. For example, the amount of passive income you will make staking SHIB depends on the exchange that you use, the lock-up period you select, and the number of tokens you stake. However, for every $10,000 worth of staked tokens, it’s now possible to earn more than $1,200 per year in continuous passive income. That’s far greater than most other techniques of generating passive revenue allow.
Barking up the wrong tree?
Shiba Inu staking may earn you a lot of money over time, but it isn’t necessarily the greatest option. If the price of a meme coin drops while your tokens are locked up, you will not be able to sell them. It is possible that your overall loss will be larger than your staking payouts.
Stablecoins like Tether (USDT 0.27%) are an attractive alternative for investors looking to produce passive income by staking crypto. The maximum yearly yield available for staking Tether is 12.3 percent, whereas Shiba Inu has a maximum annual yield of only 10%. Stablecoins are less volatile than SHIB. Its value has barely changed thus far in 2022, yet SHIB is down more than 40% thus far in the year.