Proof-of-Stake Cryptocurrencies Have $4 Billion in Staked Funds: Diar
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An increasing trend in cryptocurrency looks set to continue as major proof-of-stake (PoS) projects launch in 2019, industry newsletter Diar noted in its latest weekly digest on March 18.
PoS, an algorithm used in many well-known cryptocurrencies such as Eos (EOS), Dash (DASH) and Tron (TRON), is accounting for a rising amount of value in the ecosystem.
This year, half a dozen more PoS projects will launch, Diar notes, on the back of the debut effort from Cosmos (ATOM), a PoS project that raised $17 million in its initial coin offering in 2017.
Many coins only employ PoS to some extent, with the proportion of total supply “staked” by network participants changing. Staking refers to a participant proving they own a certain number of coins as part of the network’s consensus mechanism.
With Eos, the staked total has reached 47 percent of overall supply, making it the most staked coin in dollar terms, according to Diar’s calculations, at $1.8 billion.
Second is Dash, with $431 million staked, followed by newly-launched Cosmos with $309 million. In total, staked funds are worth around $4 billion.
“EOS, whose mainnet launch was met with hiccups due to low staking participation, now represents nearly half of the staked value on PoS blockchain networks alone,” the publication added.
As Cointelegraph reported last month, MIT is currently working on a new format of cryptocurrency based on PoS, while the largest altcoin by market cap, Ethereum (ETH), is set to transfer to the protocol by 2021.