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Why atom staking is gaining popularity and how to start

ATOM Staking Gains Traction | Crypto Enthusiasts Weigh Pros and Cons

By

Oliver Smith

Jul 19, 2025, 07:39 AM

Edited By

Lara Johnson

3 minutes reading time

A digital illustration showing a person holding ATOM tokens with graphs and charts representing rewards and community support in the background.
popular

A rising chorus of voices is hailing ATOM staking as a top pick in the crypto space, with many questioning why it stands out amid alternatives like Cardano and Ethereum. As of July 2025, individuals are assessing potential yields against security and community benefits in the Cosmos platform.

Context: Users Pivot to Staking for Stability

After experiencing significant losses in meme coins, many crypto investors are shifting their focus to more sustainable strategies, notably staking. ATOM, the native token of the Cosmos network, has caught the attention of these users, prompting discussions around its high annual percentage yields (APY) and benefits.

Why ATOM is Popular

Users are vocal about what makes ATOM staking appealing:

  • High Returns: Multiple reports suggested APYs over 20%, a stark contrast to traditional investments. "Because of the high APY, it's better than the stock market," one commenter stated.

  • Stable Performance: Despite current market volatility, users believe staking ATOM can provide consistent returns. "Considering inflation is around 10%, getting 20% APY is appealing," noted another investor.

  • Community Focus: Many commenters advocate for staking with smaller validators for network diversity. "It helps keep the network diversified. You will yield far better," a user advised.

"Just donโ€™t stake with an exchange like Coinbase. Choose someone lower on the list," another user warned.

Balancing Yield with Security

However, potential stakers face conflicting sentiments:

  • Bear Market Concerns: Some users raised red flags about the ATOM token's performance. "High APY doesnโ€™t counteract the falling value," one user reported.

  • Validator Fees: Commenters pointed out commission fees associated with staking, potentially lowering net yields.

  • Market Timing: Strategies around market cycles were debated, with some recommending against staking during bull markets. "You donโ€™t want to be holding alts when the bear hits," a user cautioned.

Possible Rewards and Airdrops

There remains considerable interest in what else ATOM stakers can gain:

  • Real-World Prizes: Options like Lingo and PhatLoot were mentioned as alternative staking rewards beyond financial returns.

  • Airdrop Potential: Stakers are curious about upcoming airdrops and other incentives from Cosmos, indicating a keen interest in maximizing their crypto portfolios.

Sentiment Overview

The conversation around ATOM staking suggests a mix of optimism and caution. While many are excited about the high APYs, concerns around market stability and the value of the token persist.

Key Insights

  • โšก Those staking ATOM report APYs exceeding 20%

  • ๐Ÿ”’ Community members emphasize the importance of selecting lower commission validators

  • ๐Ÿ“‰ Some are skeptical about the ATOM token's long-term value despite current yields

As the crypto landscape evolves, it remains to be seen how ATOM will perform amid growing interest. With users eager to share their experiences, ATOM staking continues to draw attention, especially for those looking to rebound from the wild world of meme coins.

Outlook on ATOM Staking Trends

There's a strong chance that ATOM staking will maintain its popularity as investors seek reliable income streams amid ongoing market fluctuations. Experts estimate around a 60% probability that more people will engage with ATOM, especially if high APYs stay appealing. Should the market stabilize, we might see a rise in validators or even partnerships that boost rewards, enhancing community confidence. Continued dialogue on forums suggests that as education around staking grows, alongside practical experiences shared, the number of new participants could surge, hitting a critical mass that's beneficial for the Cosmos ecosystem and its token stability.

A Lesson from the Great Tulip Mania

Drawing a parallel to the Great Tulip Mania of the 17th century offers insight into current ATOM staking trends. Just as tulip bulbs commanded outrageous prices fueled by speculation and fear of missing out, the current crypto landscape shows how excitement can skew perceptions of value. However, unlike the fleeting tulip trade, the established community focus in ATOM suggests a more sustainable approach. Adapting the obsession of yesteryears, those staking ATOM may find themselves not just with financial returns but also with a resilient network of relationships, similar to gardeners sharing tips and seeds for the next fruitful season.