Proof-of-stake coins are making huge gains against Bitcoin

By Daniel Phillips

Four large proof-of-stake (PoS) coins have all managed to rack up impressive gains against Bitcoin (BTC) in the last three months. These are: Tezos (XTZ), Cosmos (ATOM), VeChain (VET) and NEO. According to data provided by Messari Pro, these coins have managed to gain an average of more than 49% against BTC in this time.

As it stands, VeChain is currently leading the way after managing to gain on BTC by more than 58% in this time, where Cosmos, Tezos, and NEO are not far behind at 55%, 48.4%, and 35.5% respectively. In December, Tezos had even rallied into the top ten coins by market cap, although it has since dropped back down to fourteenth place.

Comparatively, around half of the top 25 cryptocurrencies have also made gains against Bitcoin in this time, though these gains are much less pronounced. This indicates traders are beginning to favor PoS coins. Part of the reason behind this can be attributed to several major exchanges adding staking support, thereby making it much easier for investors to generate a passive income through regular staking rewards.

With that said, although these PoS coins are performing well against BTC over the long term, the short-term outlook isn't as rosy, as Tezos and VeChain are both experiencing minor losses of 1-3% in the last day, whereas Cosmos and NEO are up 1.4% and 0.4% respectively.

Proof of stake as a concept has also been getting a significant amount of attention lately, as Ethereum (ETH)—currently the second-largest cryptocurrency—has begun transitioning to a hybrid proof-of-stake consensus system with its recent Muir Glacier hard fork. Perhaps proof of stake is about to enter its heyday.

Recommended News