Staking Crypto: The High-Risk Dividend Play Luring 35% Of Digital-Asset Investors
Staking cryptocurrency has become the high-risk version of a dividend play, with 35% of digital-asset investors saying in EY’s March 2025 survey that yield generation keeps them in the game.
Unlike dividend stocks or bonds, staking returns come with liquidity limits and lock-ups that prevent investors from selling at preferred prices.
Some higher-yielding cryptocurrencies, like five-year-old blockchain network Polkadot (CRYPTO: DOT), have seen prices drop roughly 30% over the past year — wiping out much of the staking income. DOT currently offers about 7.6% annualized yield.
“Staking has emerged as the Web3 equivalent of dividends, but with unique trade-offs investors need to recognize,” said Alex Hung, Head of Operations at cryptocurrency exchange BTCC, founded in Shanghai in 2011. “On one hand, it provides a predictable yield mechanism that can encourage long-term holding and stability within crypto ecosystems. On the other, liquidity constraints, technical risks, and evolving regulatory interpretations make it far less straightforward than buying a dividend stock or a bond. For retail investors, the key is to weigh the potential yield against the heightened uncertainty, rather than viewing staking as a guaranteed income stream.”
The U.S. Securities and Exchange Commission‘s Division of Corporation Finance issued a staff statement on August 5, 2025, addressing digital assets liquid staking, in particular. Liquid staking means you can buy and sell when you want as opposed to having to lock-in. This August note was a follow-up to its May 29, 2025 Protocol Staking Statement.
Legal risks remain if token sellers introduce yield guarantees or additional perks. This evolving landscape makes the staking landscape uncertain.
“I think staking is still a massive risk for retail investors,” said Naeem Aslam, CIO of Zaye Capital Markets in London. “Even professional investors remain uncertain about the safety and liquidity of these …
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