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Staking has become one of the most popular ways for crypto investors to generate passive income. While big names like Ethereum, Solana, and Polkadot usually dominate the conversation, there’s a wide range of underrated altcoins that quietly provide attractive staking rewards along with strong fundamentals.
In 2025, as institutional adoption grows and more retail investors look for sustainable yield, staking is evolving into a powerful wealth-building strategy. This article explores 10 underrated altcoins with staking rewards that may not be in the spotlight but are worth a closer look for long-term investors.
1. Cosmos (ATOM) – The Internet of Blockchains
Cosmos is often referred to as the “Internet of Blockchains” thanks to its interoperability-focused ecosystem. Its staking system is both robust and rewarding.
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Average Staking Rewards (2025): ~15–20% APY depending on validator choice.
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Why It’s Underrated: While ATOM has been around for years, it doesn’t receive the same hype as Ethereum or Solana. Yet, its Inter-Blockchain Communication (IBC) protocol is powering dozens of cross-chain projects.
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Extra Advantage: Active governance role for stakers—your stake also gives you a voice in the ecosystem’s evolution.
2. Tezos (XTZ) – The Self-Amending Blockchain
Tezos remains one of the most innovative proof-of-stake blockchains, with its focus on self-amendment (meaning the network can upgrade without hard forks).
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Average Staking Rewards: ~5–7% APY.
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Why It’s Underrated: Despite pioneering concepts like liquid proof-of-stake, Tezos hasn’t captured the same mainstream attention as newer chains.
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Extra Advantage: Energy-efficient and highly sustainable, making it attractive for eco-conscious investors.
3. Algorand (ALGO) – The Green Blockchain
Algorand is built for speed, scalability, and sustainability. With a strong focus on carbon neutrality, it has drawn partnerships with institutions and governments.
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Average Staking Rewards: ~4–6% APY.
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Why It’s Underrated: ALGO has a dedicated following but hasn’t yet broken into the top-tier conversation. However, its real-world use cases in payments and CBDCs are expanding.
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Extra Advantage: Stakers participate in governance while benefiting from a highly reliable blockchain.
4. Near Protocol (NEAR) – Developer-Friendly Staking
NEAR has made a name for itself as one of the most developer-friendly ecosystems, with a focus on usability and low fees.
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Average Staking Rewards: ~10–12% APY.
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Why It’s Underrated: NEAR offers strong rewards and a growing developer base, but it often sits in the shadow of Ethereum Layer 2s.
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Extra Advantage: Great potential for DeFi and NFT adoption, meaning stakers can enjoy both yield and ecosystem growth.
5. MultiversX (EGLD) – Formerly Elrond
Previously known as Elrond, MultiversX rebranded to focus on metaverse, gaming, and high-performance dApps. Its staking model is highly competitive.
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Average Staking Rewards: ~12–15% APY.
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Why It’s Underrated: Despite strong fundamentals and tech, it hasn’t reached the adoption levels of bigger blockchains.
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Extra Advantage: Unique “Adaptive State Sharding” for scalability makes it future-ready.
6. Hedera (HBAR) – The Enterprise Blockchain
Hedera Hashgraph is not a typical blockchain—it’s a distributed ledger designed for enterprise use. Companies like Google, IBM, and LG are part of its governing council.
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Average Staking Rewards: ~6–8% APY.
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Why It’s Underrated: HBAR is less visible in the retail investor market but has massive potential through enterprise adoption.
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Extra Advantage: Low fees and high transaction speed make it ideal for business applications.
7. Flow (FLOW) – The NFT and Gaming Blockchain
Flow was designed for NFTs and gaming, and it powers well-known projects like NBA Top Shot.
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Average Staking Rewards: ~8–10% APY.
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Why It’s Underrated: While Flow had early hype during the NFT boom, its momentum cooled. Yet, in 2025, it remains a strong contender for digital collectibles and gaming.
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Extra Advantage: User-friendly design and mainstream partnerships make it attractive for mass adoption.
8. Cardano (ADA) – The Quiet Giant
While Cardano is well-known, many investors underestimate its staking potential. Its staking mechanism is one of the most decentralized in the industry.
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Average Staking Rewards: ~4–6% APY.
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Why It’s Underrated: Overshadowed by faster chains, ADA still offers reliability and sustainability.
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Extra Advantage: 70%+ of ADA is staked, showing strong community commitment.
9. VeChain (VET) – Dual-Token Model
VeChain is widely used in supply chain management and enterprise adoption. Its staking-like model generates VTHO, which powers transactions.
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Average Staking Rewards: ~3–5% equivalent through VTHO generation.
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Why It’s Underrated: VET isn’t seen as a traditional staking token but offers a consistent reward system tied to real-world utility.
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Extra Advantage: Partnerships with major corporations ensure long-term relevance.
10. Avalanche (AVAX) – Subnet Innovation
Avalanche remains one of the most innovative ecosystems thanks to its subnet architecture, which allows custom blockchains to be built within its ecosystem.
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Average Staking Rewards: ~8–10% APY.
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Why It’s Underrated: Overshadowed by Ethereum Layer 2s, Avalanche continues to build quietly with strong tech.
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Extra Advantage: Stakers benefit from both yield and ecosystem growth as subnets expand.
Risks of Staking to Keep in Mind
While staking offers reliable passive income, it’s not risk-free:
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Lock-up Periods: Some coins require long bonding times, reducing liquidity.
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Validator Risks: Choosing unreliable validators can result in slashing penalties.
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Market Volatility: Even if you earn rewards, token price swings can impact returns.
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Network Risks: Adoption and governance challenges may affect long-term yields.
Final Thoughts
In 2025, staking is no longer limited to a handful of well-known blockchains. These 10 underrated altcoins not only provide attractive staking rewards but also bring unique strengths to the table—whether it’s interoperability, sustainability, or enterprise adoption.
For investors looking to diversify and generate steady yield, building a portfolio around these projects could balance passive income with long-term growth potential.
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