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These tokens are Proof-of-Stake (PoS) tokens that allow you to stake them on their respective networks.
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This can potentially provide an additional source of passive income.
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DOT, MATIC, SOL and ADA are leading tokens by market capitalization.
Many investors view staking cryptocurrency tokens as a way to put holdings to work and earn extra yield.
Polkadot (DOT), Polygon (MATIC), Solana (SOL) and Cardano (ADA) are solid choices for staking, and below we explain why.
Should you invest in Polkadot (DOT)?
On January 14, Polkadot (DOT) was trading at $26.62.
To put this price in context, we review DOT’s recent monthly performance and its all-time high.
DOT’s all-time high occurred on November 4, 2021, when the token reached $54.98 — $28.36 higher than the January 14 price.
Looking at December’s performance, DOT peaked on December 1 at $38.68. Its lowest point during the month was December 20, at $23.54 — a decline of $15.14 or roughly 39% from that peak.
Given current levels and the token’s fundamentals, DOT has the potential to reach $30 by the end of January, making it a strong consideration for investors interested in staking and upside potential.
Should you invest in Polygon (MATIC)?
On January 14, Polygon (MATIC) was trading at $2.25.
To understand what this price means for MATIC, we compare it to its all-time high and review December’s price action.
MATIC’s all-time high was on December 27, 2021, when it reached $2.92, about $0.67 higher than the January 14 price.
During December, MATIC’s lowest point was $1.76 on December 14, while its highest point was $2.89 on December 27 — an increase of $1.13 or roughly 64% from the December low.
Given this momentum and Polygon’s network utility, MATIC could reach $3 by the end of January, making it a compelling option for those seeking staking rewards and growth.
Should you invest in Solana (SOL)?
On January 14, Solana (SOL) was trading at $146.16.
We compare this price to SOL’s all-time high and consider its performance over the previous month to gauge what it represents.
SOL’s all-time high was $259.96 on November 6, 2021, which is $113.80 higher than the January 14 price.
In December, SOL reached a high of $242.28 on December 2 and a monthly low of $151.62 on December 14 — a drop of $90.66 from the December high.
At $146.16, SOL remains a solid investment for investors who believe in Solana’s ecosystem and its staking potential; it could climb to $160 by the end of January under favorable market conditions.
Should you invest in Cardano (ADA)?
On January 14, Cardano (ADA) was trading at $1.26.
To evaluate this price for ADA, we compare it with its all-time high and review the token’s performance during the prior month.
ADA’s all-time high was $3.09 on September 2, which is $1.83 above the January 14 price.
In December, ADA’s highest point was $1.75 on December 2, while the lowest was $1.20 on December 17 — a decline of $0.55 from the monthly high.
At $1.26, ADA represents a potentially worthwhile investment for those looking to stake and earn returns; it could rise to $1.40 by the end of January if market conditions improve.