Bitcoin-backed lending is experiencing a resurgence, driven by the growing demand for liquidity without sacrificing long-term exposure to bitcoin, and because of the potential tax advantages that loans offer for those who have seen their assets appreciate greatly. Both individual and institutional borrowers are using these instruments more and more as a tool in their treasury management arsenal as bitcoin becomes a staple in portfolios, and investors look for more ways to benefit from their holdings.

The popularity of these instruments grew as the bitcoin price rose in 2024 and is accelerating into 2025. In the first half of 2024, crypto lender Ledn saw $191 million worth of bitcoin-backed loans. In just the first month of 2025, Lendn has seen over $100 million in bitcoin-backed loans.

What makes individuals and institutions move to bitcoin for loans, and how do they pick a provider? In this article, we’ll take a look at the mechanics, benefits and inherent risks of this growing market and contrast centralized and decentralized approaches to bitcoin lending to find what strategy works best for you.

Why bitcoin-backed lending?

Bitcoin-backed lending is one of the fastest growing digital finance opportunities on the market. For borrowers, it’s a way to unlock capital without having to part ways with their coins.

For individuals, bitcoin-backed loans offer the opportunity to use loans to buy real estate, start businesses, pay debt and more. For institutions, it offers a unique way to hedge additional investments or business ventures with the market depth and liquidity only offered by bitcoin.

Whether you’re an institution or an individual, bitcoin-backed lending offers the strong foundation of bitcoin as a collateral, with benefits that go far beyond the usual buying and selling, like tax planning.

Bitcoin is king for collateral

Bitcoin remains the most liquid cryptocurrency, with a deep market that ensures deep liquidity even during periods of volatility. Bitcoin’s proven resilience since its inception makes it the most trusted cryptocurrency. Its robust security and widespread adoption further solidify its position as the premier collateral asset. While bitcoin is a robust collateral asset, its price swings can impact loan-to-value management. Borrowers must carefully monitor their positions to avoid margin calls and forced liquidations.

Benefits beyond buy/sells

One of the most compelling reasons for bitcoin-backed lending is the ability to access liquidity without selling bitcoin. This is particularly valuable for long-term holders who believe in bitcoin’s future potential, but need cash for personal expenses, investments or business operations. By using bitcoin as collateral, borrowers can retain their exposure to potential price appreciation while meeting their immediate financial needs.

Additionally, selling bitcoin can trigger significant capital gains taxes, depending on the jurisdiction. Bitcoin-backed lending allows borrowers to avoid these immediate tax consequences.

However, it’s crucial to understand the implications of loan-to-value ratios, margin calls and bitcoin’s inherent volatility. A well-managed loan can provide financial flexibility, but poor risk management can lead to forced liquidations and unexpected tax liabilities.

Understanding the process, risk considerations and finding your lender

The process works by using bitcoin as collateral to secure loans in fiat currency or stablecoins, typically operating with a 50% loan-to-value (LTV) ratio. This means if you deposit $100,000 in bitcoin, you can borrow up to $50,000, providing a substantial buffer against bitcoin’s notorious price volatility. The actual rate varies by provider and the terms can differ depending on whether you are using a centralized (CeFi) or decentralized (DeFi) platform.

DeFi

DeFi lending is driven by smart contracts, eliminating the need for intermediaries. However, this also introduces code and operational risks. With CeFi, borrowers and lenders rely on contractual agreements and established compliance measures, providing a clear legal framework that provides legal protection and security that cannot be offered in DeFi.

Smart contracts are only as secure as the code they’re built on. Vulnerabilities can lead to significant losses, as seen in high-profile hacks. Take THORChain, for example, which saw its lending service become insolvent due to how it designed its risk management system and incentive mechanism. This resulted in over $200 million in user funds being impacted.

Finally, there’s the consideration of wrapping your bitcoin to access DeFi protocols: the process of bringing your bitcoin onto platforms that allow for decentralized finance smart contracts. While the key advantage of lending is to avoid potential taxable events and maintain your bitcoin holdings, users need to give up control of their bitcoin in order to have it “wrapped,” and they receive a bitcoin “IOU” on a different chain. As a result, this process can introduce tax complications and additional risks.

CeFi

Centralized platforms like Ledn offer a simpler, regulated approach to bitcoin-backed lending when compared to DeFi. CeFi platforms are often easier to navigate, with straightforward interfaces.

CeFi platforms operate within established regulatory frameworks, offering greater transparency and security. While bitcoin may be the leading disruptor in the finance industry, safeguards already exist around lending. These existing frameworks, along with crypto-friendly regulatory frameworks being developed internationally, offer a clear path for understanding and enforcing your rights in crypto lending.

Risk and platform management

Risk management is fundamental to bitcoin lending, with platforms employing sophisticated safeguards like margin calls and automatic liquidation protocols to protect lenders from significant price fluctuations. While these measures provide essential protection, successful participation in bitcoin-backed lending requires a comprehensive approach to platform selection and risk assessment.

When choosing a lending platform, thorough counterparty due diligence becomes crucial . Borrowers must carefully evaluate the platform’s solvency, reputation and security infrastructure – particularly in centralized finance, where the platform’s risk management capabilities directly impact loan security.

Beyond security considerations, users must also navigate the complexities of fee structures, withdrawal policies and service-level agreements, as hidden costs or ambiguous terms can significantly impact the lending experience.

For those considering bitcoin-backed lending, success lies in not only understanding these various elements, but also in recognizing that platform-specific terms, security protocols and tax implications in their jurisdiction form an interconnected web of considerations that must be carefully evaluated before committing to any lending program.

Crypto AI trading bots are advanced software tools that combine AI with machine learning (ML) to automate cryptocurrency trading. They analyze vast amounts of data to execute trades at high speeds.

One of their main appeals to investors is how they can maximize profits while minimizing human error and emotional decision-making (and saving time and energy—all of that, of course, at least in theory).

This article examines some of the best crypto AI trading bots, comparing selling points such as key features, security aspects, and more. First, let’s examine AI bots on a technical level to understand how they work and how they benefit traders.

Quick Navigation

• • How Do AI Trading Bots Work?
  • Benefits of AI Trading Bots
  • The Best AI Trading Bots for Crypto
    • Cryptohopper
    • 3Commas
    • Shrimpy
    • TradeSanta
    • Coinrule
    • Pionex
  • Factors to Consider Before Choosing The Best AI Trading Bot
    • Define Long-Term Goals
    • Bot Fees Structures
    • Bot Features
    • Practice Common Security Practices and Oversight
  • Conclusion: AI Trading Bots, Yay or Nay?

How Do AI Trading Bots Work?

AI trading bots have a multi-step process that often looks like this:

1. First, they collect real-time and historical data from various sources —exchanges, social media, news platforms, and blockchain networks— including metrics like price movements, trading volume, and market sentiment.
2. Once the data is gathered, machine learning algorithms, such as neural networks or natural language processing (NLP), analyze it to identify potential trading patterns and predict future price trends.
3. If the bot identifies a pattern, it generates a trading signal. Whether it’s a potential buy or sell order, the bot executes it automatically via exchange APIs. The three most popular strategies include arbitrage (exploiting price differences across exchanges), trend-following (using technical indicators like moving averages), and market-making (providing liquidity through simultaneous buy/sell orders).

The bot will refine its approach by learning from market outcomes to adapt to changing conditions.

Benefits of AI Trading Bots

AI trading bots can be advantageous for traders, but of course, they also come with a certain set of risks that should not be understated. First, they naturally outpace humans in speed because they can execute trades in milliseconds —it goes without saying this allows the bot to profit from many more potential positions than human traders.

Another big difference is that they do not need to sleep. They operate 24/7, so there are no concerns about fatigue. Furthermore, emotional biases like fear or greed are massively reduced, as bots consistently stick to predefined strategies compared to humans.

Users can backtest strategies against historical data or even use demo accounts —if the platform allows it, naturally.

The Best AI Trading Bots for Crypto

Below are the most popular crypto AI trading bots in the market. They were chosen based on their track record, the developers’ reputation, and comparing features like backtesting, exchange API integration, fees and subscription plans, trading options, and more.

Without further ado, let’s get to it.

Cryptohopper

Cryptohopper is a popular cloud-based AI trading bot supporting around 16 major cryptocurrency exchanges, including Binance, Coinbase Pro, Kraken, and KuCoin.

It allows users to automate trading strategies, manage portfolios, and execute trades based on predefined conditions or external signals. It’s known for its user-friendliness, especially its interface, but it also provides professional traders with advanced tools and the flexibility to customize the bot as per their needs.

Key Features of CryptoHopper

• Automated Trading: Users can set up custom trading strategies using technical indicators, candlestick patterns, and signals. The bot executes trades automatically based on these strategies.
• Trading features: Trailing stop-loss, trailing stop-buy, and dollar-cost averaging (DCA).
• AI-based algorithms: The platform’s AI analyzes multiple trading strategies and selects the most effective one based on market conditions.
• Copy trading features: Allows users to mimic the strategies of experienced traders or subscribe to trading signals from the Cryptohopper Marketplace.
• Backtesting and paper trading: Users can test their trading strategies using historical data through backtesting. Paper trading allows for risk-free practice with simulated funds.
• Marketplace for strategies and signals: Where buy and sell trading strategies, templates, and signals. So, if the user is looking for pre-configured strategies or wishes to monetize their trading expertise, that’s the place to go.

Fees and Security

Crytohopper offers four subscription tiers:

1. Pioneer: Free. Limited features, most suited for beginners.
2. Explorer: $19/month. Includes 80 open positions, 10-minute strategy intervals, and the basic trading features.
3. Adventurer: $49/month. Offers 200 open positions, 5-minute intervals, and advanced features like backtesting.
4. Hero: $99/month. Provides 500 open positions, 2-minute intervals, and access to AI strategies and market-making tools.

Cryptohopper provides Two-Factor Authentication (2FA), SSL encryption, and API key permissions, which are all a must in a decently safe crypto trading bot.

Pros and Cons

Pros explained:

• No coding is required, which makes it accessible to a higher range of traders.
• Users can customize their trading approaches thanks to its flexibility.
• Access to numerous exchanges and cryptocurrencies.
• Robust security protocols to safeguard users’ accounts.

Cons explained:

• The free tier has many restricted features, and the subscription cost can be high for those with a smaller budget.

3Commas

3Commas is a highly customizable trading bot offering a robust set of features and settings that users can experiment with and modify through time. It offers multi-pair bots that monitor over 100 pairs, making it versatile for everyday trades.

It is one of the oldest AI-powered crypto trading bots. It was launched in 2017 and is growing into a popular trading assistant. One of its most notable features is the ability to connect multiple bots and trading tools to an exchange account via an API, allowing users to automate their strategies without too many hurdles.

Key Features of 3Commas

• Multiple bots: 3Commas offers DCA Bots, Grid Bots, Options Bots, and Signal Bots. The Options Bot allows users to buy and sell options contracts, while the Signal Bot allows traders to enter positions based on TradingView alerts or other trading software.
• Smart Trading Terminal: A one-stop access point for fast manual limit and market order trades.
• Backtesting and paper trading allow traders to backtest their strategies using historical data and practice them using paper trading.
• Portfolio management: Offers a dashboard to keep track of crypto holdings across multiple wallets or exchanges.

Fees and Security

3Commas’ pricing structure includes four subscription plans:

1. Free Plan: A no-cost option with limited features, suitable for beginners exploring the platform.
2. Starter Plan: Priced at $29 per month or $174 per year, offering essential trading tools.
3. Advanced Plan: Costing $49 monthly or $294 annually, it adds more robust features for active traders.
4. Pro Plan: Costing $99 per month or $594 annually, providing access to all features, including unlimited bots and API integrations.

Annual subscriptions offer significant savings. While 3Commas does not charge additional commissions on trades, users should account for standard exchange trading fees. Certain exchanges, like Binance, also offer discounted 3Commas subscriptions.

Regarding security, 3Commas employs several measures to safeguard user accounts and data. These include encrypted API keys with IP whitelisting options and a 2FA.

The platform’s API permissions are limited to trading, preventing withdrawals from connected accounts. It also leverages Cloudflare protection and uses SSL/TLS encryption to secure data transmission between users and 3Commas servers.

However, in December 2022, an API key leak impacted more than 100,000 customers, and another breach followed in October 2023, affecting thousands of users and raising concerns over the platform’s ability to protect users’ data.

While 3Commas has enhanced its security mechanisms, and no incidents have been reported in the years following, users must stay proactive and keep their accounts as safe as possible.

Pros and Cons of 3Commas

Pros explained:

• Offers several bots with customizable properties
• Offers advanced trading strategies and features, such as stop-loss, take-profit, trailing stops
• Supports multiple exchanges with seamless integration-
• Offers backtesting and demo account.

Cons explained:

• Past security breaches can deflect traders.

Shrimpy

Shrimpy is one of the best AI trading bots for crypto due to its vast features, flexibility, security, and simplicity. It allows users to immediately start their trading plans with automated strategies or simply copy the portfolios and positions of top traders.

Key Features of Shrimpy

• Portfolio management: The platform supports automated portfolio rebalancing, allowing users to maintain a specific asset allocation without adjusting manually —a feature particularly convenient for those seeking consistent long-term portfolio performance.
• Social trading: The copy trading feature allows users to replicate successful traders’ strategies, which is especially helpful for new traders.
• Exchange integration: Supports over 30 cryptocurrency exchanges through a universal API. All accounts can be managed through a single dashboard.
• Analytics and data: Offers detailed portfolio tracking, performance analysis tools, and historical and live market data access.
• Backtesting and demo account: Like other bots, Shrimpy allows users to backtest strategies using historical data and practice with a demo account.

Fees and Security

Shrimpy offers three subscription plans:

1. Zero: A free account that offers unlimited spot trades and a restricted number of features, such as one exchange, one portfolio, three backtests per day, etc.
2. Standard: It costs $15/month and offers more options and features, including DCA and dynamic indexing while allowing for customizable rebalance periods.
3. Plus: It costs $39/month and offers complete API access, integration with 25 exchanges, over 100 backtests per day and more.

Regarding security, Shrimpy employs 2FA, API key encryption using FIPS 140-2 with hardware security modules, and IP whitelisting.

Pros and Cons of Shrimpy

Pros explained:

• A wide range of features, such as portfolio rebalancing, backtesting, social trading, and multi-exchange integration
• Secure API management with 2FA.
• Affordable pricing options.

Cons explained:

• No trading bot scripting.
• Web-based only, no mobile app so far.

TradeSanta

TradeSanta is a cloud-based platform offering AI crypto trading bots with advanced capabilities. The platform supports multiple exchanges, including Huobi, OKX, and Coinbase Pro, on which users can execute long and short-term strategies.

It also allows users to set up a bot in just five minutes using pre-set templates or build their own using customized parameters.

Key Features of TradeSanta

• Multiple bots with automated features: All TradeSanta Bots use predefined strategies to adapt to market conditions. There are grid bots, DCA bots, Futures bots, Arbitrage bots, and many more.
• Risk management tools: Provides basic features such as stop-loss, trailing stop-loss, and trailing take profit.
• Technical indicators: It offers well-known trading tools and indicators like the MACD, RSI, and Bollinger Bands that can adapt bots to different strategies/market conditions.
• Mobile app: One of the few trading bots that can be used on mobile devices.
• Demo and paper trading: Using paper money, users can test their strategies in actual market conditions.

Fees and Security of TradeSanta

TradeSanta follows a subscription-based pricing model:

1. Free: Supports 1-2 bots with basic features.
2. Advanced: $32/month, supporting up to 99 bots and more advanced features.
3. Maximum: $45/month, offering unlimited bots, priority support, all strategies without restrictions, and more.

Regarding security, TradeSanta uses API key restrictions that prevent bots from withdrawing users’ assets. Also, all API keys are encrypted using 256-bit AES encryption.

It also uses Cloudflare CDN as a layer of protection against DDoS attacks.

Pros and Cons of TradeSanta

Pros explained:

• 24/7 trading
• Customizable Strategies: Flexibility to design and implement personalized trading strategies.
• Built-in risk-management tools.

Cons explained:

• The 3-day trial period may not be long enough for new users to evaluate the platform entirely.
• Pricing: Subscription plans may be considered expensive compared to competitors.
• Limited exchange options, considering other bots support between 16 to 25 exchanges.

Coinrule

Coinrule is a drag-and-drop platform that allows users to create their trading strategies or AI bots without technical expertise or coding skills.

It offers a versatile and user-friendly solution for automated cryptocurrency trading. With an intuitive interface and pre-built templates, it supports custom strategies and flexible options for newcomers and professional traders.

Key Features of Coinrule

• Simple and user-friendly: Provides a drag-and-drop interface to allow users to design custom trading strategies. This feature comes with over 150 pre-designed templates available for quick implementation.
• Support for many exchanges: It integrates with over 10 cryptocurrency exchanges, including Binance, Kraken, Coinbase, and more.
• Marketplace: It allows users to access a venue to explore, buy, or sell trading strategies created by other traders. They can implement advanced trading tools to tailor the strategies to their needs.
• Backtesting: Users can test their strategies against historical market data. The program also provides a demo account for testing real-time markets using paper money.

Fees and Security

Coinrule operates on a tiered subscription model:

1. Starter: Free, with a capped $3,000 monthly trade volume.
2. Hobbyist: $29.99/month. $500,000 monthly trade volume
3. Trader: $59.99/month: $10 million monthly trade volume
4. Fund: $749/month: Unlimited trade volume

On the security side, Coinrule also uses API keys encrypted with 256-bit AES and private keys are stored in detached data storage, which is also encrypted with AES-256.

Pros and Cons of Coinrule

Pros explained:

• Access to a library of over 150 ready-to-use strategies
• Intuitive drag-and-drop functionality makes strategy creation simple for users of all levels.
• No coding is required to build trading strategies or create trading bots.
• Provides a vast amount of educational resources, including tutorials, strategy examples, learning materials, and more.

Cons explained:

• There are not a lot of exchanges to choose from compared to other bots.
• The limited demo exchange restricts the user from testing the platform’s capabilities.

Pionex

Pionex is an AI-powered platform where users can build their own AI trading bots without extensive technical expertise. All trading bots are free and have different strategies to meet different needs.

Key Features of Pionex

• The platform provides 16 free AI trading bots that can be set up without coding expertise. These bots come in different forms: Grid trading, DCA Bot, Arbitrage Bot, and much more.
• Cloud-based bots: All bots can trade automatically without constant human intervention, as they are based in the cloud, not on devices.
• Leveraged grid bots: Bots can perform grid trading with leverage to maximize returns, yet risks are considerably higher.
• Smart Trade allows users to set up take-profit, stop-loss, and other trading conditions for their bots.
• Customization: All bots can be customized per the user’s need, allowing them to change trading pairs, price ranges, investment allocation, risk management settings, etc.

Fees and Security

Unlike the platforms above, Pionex does not charge a monthly subscription. Instead, it uses a fee-per-trade model. Here’s a quick rundown:

• Trading Fees: Both maker and taker fees are set at 0.05% per transaction.
• Deposit Fees: Cryptocurrency deposits are free. However, credit card deposits incur a 3.5% fee for European users and 4.5% for non-European users.
• Withdrawal Fees: Cryptocurrency withdrawals have flat fees that vary depending on the coin.

There are no additional charges for using Pionex’s trading bots, but beware of withdrawal fees as they heavily depend on the asset.

Pros and Cons of Pionex

Pros explained:

• Bots are free to use and user-friendly, lowering the entry barriers for newcomers.
• Bots are easy to use and automated, saving time and energy as there’s no need for constant monitoring.
• No subscription fees, only standard trading fees applied.

Cons explained:

• Fees may be higher than most AI bots.
• No demo accounts nor backtesting capabilities.

Factors to Consider Before Choosing The Best AI Trading Bot

Choosing the best AI trading bot is not as simple as it sounds. Users must consider several factors to match the bot with their trading goals and risk tolerance.

Define Long-Term Goals

Users must first define their goals and risk tolerance. Are they looking for short-term or long-term price action? Second, how comfortable are they with market volatility or trades going south? These two factors are crucial because the bots and their strategies must match their objectives.

For instance, one particular trader may look into grid trading bots, popular for those seeking to profit from market volatility by repeatedly buying low and selling high as prices fluctuate. They are called “grid trading bots” due to the way orders are executed:

• When the price of Bitcoin (BTC) moves down and triggers a buy signal, the bot executes the buy order.
• But when it moves up and triggers a sell order, it sells at a profit, and so forth, as long as the price stays within a grid-like range.

On the other hand, dollar-cost averaging (DCA), as the name suggests, applies the DCA strategy by automatically executing buy orders at specific intervals —daily, weekly, monthly, etc.— without having to intervene to reallocate funds manually, specifying the amount per trade, which cryptos, etc.

Meanwhile, arbitrage bots are also quite popular as they profit from price differences across different exchanges.

In short, a DCA bot uses a passive, long-term approach suitable for those with a lower risk profile, while Grid bots are all about active, short-term strategies that profit from price oscillations. Finally, arbitrage bots constantly look for market inefficiencies.

Bot Fees Structures

It’s crucial to understand the bot’s fee structure. Is the bot subscription-based, transaction-based, or performance-based? Ignoring the fees could lead to unexpected costs that impact trading profitability at the end of the day.

To give an idea, bots charging subscription fees often range from $20 to $40 monthly, and some even charge $50. Meanwhile, bots that charge per trade could charge a 0.05% fee per transaction, which is the standard.

Performance-based bots are less common, but they have their charm — they only profit when the user does and don’t pay any fees or costs unless the bot is successful. That said, in periods of low profitability, they pay less (or nothing). However, the fees can be considerable when the bot is performing well.

In any case, the main issue with performance-based bots is that calculating and tracking performance fees can be burdensome or complex, depending on each bot and its reputation.

Bot Features

The best AI trading bots for crypto should have a minimum amount of key features to make the cut, and these are the ones to look at:

1. Supported exchanges: The bot should be compatible with the cryptocurrency exchanges it is used on, such as Binance, Kraken, Coinbase, etc.
2. Trading strategy: As explained in the first point, different bots specialize in various strategies, such as DCA, arbitrate, or grid trading. Users choose one that matches their current objective. The bot should also be able to trade 24/7 to capitalize on trading opportunities in different cryptocurrencies.
3. Backtesting: Once a user has decided on a bot, they must test it. They do this by backtesting the bot’s performance using historical data to determine whether the strategy has worked before using real-life money. If the bot developer offers a demo account to trade with paper money, that’s even better.
4. Customization: While bots have specific pre-designed strategies and integrations, they often allow users to create and modify trading strategies for their preferences.
5. Security and support: Ideally, the bot should support 2FA and good API key encryption for seamless integration with crypto exchanges (this helps with data protection and quicker setups). It should also support high-frequency trading without downtime or performance issues. Moreover, reliable customer support for troubleshooting and guidance would be a good addition.

Another common practice is to gauge reliability and community sentiment by looking for reviews and discussions on forums and social media.

Practice Common Security Practices and Oversight

While they are autonomous, it doesn’t mean they will magically make users rich overnight. Setting up trading bots requires consistent oversight, a clear understanding of their limitations, and the implementation of robust risk management strategies. Here are some rules to follow:

1. Proper API key management.

Users must never share or store their keys in plain text files to prevent accidental exposure. It is also a good practice to change API keys periodically to reduce the potential impact of a breach.

2. Implement strong authentication methods.

If the platform allows for 2FA, activate it —having another protection layer for the bot and the exchange accounts never hurts. To get the highest level of security possible, users can get hardware-based 2FA, such as YubiKeys.

3. Use reputable and updated software.

Users must use bots developed by well-established providers with a strong track record in security and regularly update the bot’s software to address any newly discovered vulnerabilities. If users plan to create their own bot, they must adhere to secure coding practices, conduct regular security audits, and stay informed about emerging threats.

4. Proper risk management.

Analyze trading logs regularly to identify anomalies or unexpected behavior. Use stop-loss orders and other risk management tools to limit potential losses during market downturns.

Also, it’s good to start small —trading with minimal capital and gradually scale up as they gain confidence in the bot’s performance and security. Users must remember that AI bots are autonomous, not perfect.

Conclusion: AI Trading Bots, Yay or Nay?

To summarize, AI trading bots are capable of delivering new solutions when it comes to automated crypto trading, while leveraging advanced algorithms in a bid to execute trades at high speeds and minimize human error.

Even though these bots are capable of helping users maximize their profits and reduce emotional decision-making, it’s also very important to choose the right bot that properly aligns with the set of personal trading goals, risk tolerance, and strategies.

However, users should also remain mindful of potential security risks and ensure proper oversight and risk management. With careful selection and proper use, AI trading bots can significantly enhance a trader’s ability to navigate the volatile crypto market.

Binance has suspended a staff member accused of using insider information from a previous role at BNB Chain to front-run a token launch.

The action follows an internal investigation launched on March 23 after a complaint was filed with the exchange’s internal audit team.

The Investigation

The suspect, who was part of the Binance Wallet team at the time of the alleged misconduct, should not have had access to non-public information about the project involved. However, the platform’s investigation revealed that before being transferred to the department, the employee had worked in business development at BNB Chain.

Using insights from his previous role and familiarity with on-chain projects, the accused anticipated a market reaction to an upcoming token generation event (TGE). Before the public launch announcement, he used multiple linked wallet addresses to acquire several of the tokens. He then sold part of his holdings for profit while retaining the rest, which still had considerable unrealized gains.

“This behavior constitutes front-running based on non-public information obtained from his previous role and is a clear breach of company policy,” the Wallet team stated in an X post.

As a result, the staff member was immediately suspended, and the company is working with authorities in their jurisdiction to pursue legal action. It also confirmed that any associated assets would be handled according to applicable laws.

Community Suspicion and Rewards

Binance further addressed the role of community reports in exposing the incident, stating that while it appreciated public efforts, rewards would only be given to those who submitted information through its official whistleblowing email.

A total of $100,000 will be equally distributed among four anonymous individuals who used the platform’s official reporting channel.

Notably, the company has not disclosed the suspect’s identity, but multiple X users have pointed to Freddie Ng, a former operations manager at BNB Chain, as a likely culprit. The reports highlighted that his LinkedIn profile shows he joined Binance Wallet’s business development team last month.

Screenshots shared by X user “py” show that a wallet flagged by DEX Screener for profiting $82,400 from U DEX Platform (UUU) tokens had received the coins from another wallet initially funded by the address “freddieng.bnb,” which Ng had previously shared on his social media account.

The case is reminiscent of other crypto scandals, including that of former Coinbase manager Ishan Wahi, who was convicted in 2023 for leaking token listing information. It also resembles the insider trading case of former OpenSea product head Nate Chastain, who was accused of using secret ETH burner wallets to buy NFTs before they were featured on the platform.

Crypto AI trading bots are advanced software tools that combine AI with machine learning (ML) to automate cryptocurrency trading. They analyze vast amounts of data to execute trades at high speeds.

One of their main appeals to investors is how they can maximize profits while minimizing human error and emotional decision-making (and saving time and energy—all of that, of course, at least in theory).

This article examines some of the best crypto AI trading bots, comparing selling points such as key features, security aspects, and more. First, let’s examine AI bots on a technical level to understand how they work and how they benefit traders.

Quick Navigation

• • How Do AI Trading Bots Work?
  • Benefits of AI Trading Bots
  • The Best AI Trading Bots for Crypto
    • Cryptohopper
    • 3Commas
    • Shrimpy
    • TradeSanta
    • Coinrule
    • Pionex
  • Factors to Consider Before Choosing The Best AI Trading Bot
    • Define Long-Term Goals
    • Bot Fees Structures
    • Bot Features
    • Practice Common Security Practices and Oversight
  • Conclusion: AI Trading Bots, Yay or Nay?

How Do AI Trading Bots Work?

AI trading bots have a multi-step process that often looks like this:

1. First, they collect real-time and historical data from various sources —exchanges, social media, news platforms, and blockchain networks— including metrics like price movements, trading volume, and market sentiment.
2. Once the data is gathered, machine learning algorithms, such as neural networks or natural language processing (NLP), analyze it to identify potential trading patterns and predict future price trends.
3. If the bot identifies a pattern, it generates a trading signal. Whether it’s a potential buy or sell order, the bot executes it automatically via exchange APIs. The three most popular strategies include arbitrage (exploiting price differences across exchanges), trend-following (using technical indicators like moving averages), and market-making (providing liquidity through simultaneous buy/sell orders).

The bot will refine its approach by learning from market outcomes to adapt to changing conditions.

Benefits of AI Trading Bots

AI trading bots can be advantageous for traders, but of course, they also come with a certain set of risks that should not be understated. First, they naturally outpace humans in speed because they can execute trades in milliseconds —it goes without saying this allows the bot to profit from many more potential positions than human traders.

Another big difference is that they do not need to sleep. They operate 24/7, so there are no concerns about fatigue. Furthermore, emotional biases like fear or greed are massively reduced, as bots consistently stick to predefined strategies compared to humans.

Users can backtest strategies against historical data or even use demo accounts —if the platform allows it, naturally.

The Best AI Trading Bots for Crypto

Below are the most popular crypto AI trading bots in the market. They were chosen based on their track record, the developers’ reputation, and comparing features like backtesting, exchange API integration, fees and subscription plans, trading options, and more.

Without further ado, let’s get to it.

Cryptohopper

Cryptohopper is a popular cloud-based AI trading bot supporting around 16 major cryptocurrency exchanges, including Binance, Coinbase Pro, Kraken, and KuCoin.

It allows users to automate trading strategies, manage portfolios, and execute trades based on predefined conditions or external signals. It’s known for its user-friendliness, especially its interface, but it also provides professional traders with advanced tools and the flexibility to customize the bot as per their needs.

Key Features of CryptoHopper

• Automated Trading: Users can set up custom trading strategies using technical indicators, candlestick patterns, and signals. The bot executes trades automatically based on these strategies.
• Trading features: Trailing stop-loss, trailing stop-buy, and dollar-cost averaging (DCA).
• AI-based algorithms: The platform’s AI analyzes multiple trading strategies and selects the most effective one based on market conditions.
• Copy trading features: Allows users to mimic the strategies of experienced traders or subscribe to trading signals from the Cryptohopper Marketplace.
• Backtesting and paper trading: Users can test their trading strategies using historical data through backtesting. Paper trading allows for risk-free practice with simulated funds.
• Marketplace for strategies and signals: Where buy and sell trading strategies, templates, and signals. So, if the user is looking for pre-configured strategies or wishes to monetize their trading expertise, that’s the place to go.

Fees and Security

Crytohopper offers four subscription tiers:

1. Pioneer: Free. Limited features, most suited for beginners.
2. Explorer: $19/month. Includes 80 open positions, 10-minute strategy intervals, and the basic trading features.
3. Adventurer: $49/month. Offers 200 open positions, 5-minute intervals, and advanced features like backtesting.
4. Hero: $99/month. Provides 500 open positions, 2-minute intervals, and access to AI strategies and market-making tools.

Cryptohopper provides Two-Factor Authentication (2FA), SSL encryption, and API key permissions, which are all a must in a decently safe crypto trading bot.

Pros and Cons

Pros explained:

• No coding is required, which makes it accessible to a higher range of traders.
• Users can customize their trading approaches thanks to its flexibility.
• Access to numerous exchanges and cryptocurrencies.
• Robust security protocols to safeguard users’ accounts.

Cons explained:

• The free tier has many restricted features, and the subscription cost can be high for those with a smaller budget.

3Commas

3Commas is a highly customizable trading bot offering a robust set of features and settings that users can experiment with and modify through time. It offers multi-pair bots that monitor over 100 pairs, making it versatile for everyday trades.

It is one of the oldest AI-powered crypto trading bots. It was launched in 2017 and is growing into a popular trading assistant. One of its most notable features is the ability to connect multiple bots and trading tools to an exchange account via an API, allowing users to automate their strategies without too many hurdles.

Key Features of 3Commas

• Multiple bots: 3Commas offers DCA Bots, Grid Bots, Options Bots, and Signal Bots. The Options Bot allows users to buy and sell options contracts, while the Signal Bot allows traders to enter positions based on TradingView alerts or other trading software.
• Smart Trading Terminal: A one-stop access point for fast manual limit and market order trades.
• Backtesting and paper trading allow traders to backtest their strategies using historical data and practice them using paper trading.
• Portfolio management: Offers a dashboard to keep track of crypto holdings across multiple wallets or exchanges.

Fees and Security

3Commas’ pricing structure includes four subscription plans:

1. Free Plan: A no-cost option with limited features, suitable for beginners exploring the platform.
2. Starter Plan: Priced at $29 per month or $174 per year, offering essential trading tools.
3. Advanced Plan: Costing $49 monthly or $294 annually, it adds more robust features for active traders.
4. Pro Plan: Costing $99 per month or $594 annually, providing access to all features, including unlimited bots and API integrations.

Annual subscriptions offer significant savings. While 3Commas does not charge additional commissions on trades, users should account for standard exchange trading fees. Certain exchanges, like Binance, also offer discounted 3Commas subscriptions.

Regarding security, 3Commas employs several measures to safeguard user accounts and data. These include encrypted API keys with IP whitelisting options and a 2FA.

The platform’s API permissions are limited to trading, preventing withdrawals from connected accounts. It also leverages Cloudflare protection and uses SSL/TLS encryption to secure data transmission between users and 3Commas servers.

However, in December 2022, an API key leak impacted more than 100,000 customers, and another breach followed in October 2023, affecting thousands of users and raising concerns over the platform’s ability to protect users’ data.

While 3Commas has enhanced its security mechanisms, and no incidents have been reported in the years following, users must stay proactive and keep their accounts as safe as possible.

Pros and Cons of 3Commas

Pros explained:

• Offers several bots with customizable properties
• Offers advanced trading strategies and features, such as stop-loss, take-profit, trailing stops
• Supports multiple exchanges with seamless integration-
• Offers backtesting and demo account.

Cons explained:

• Past security breaches can deflect traders.

Shrimpy

Shrimpy is one of the best AI trading bots for crypto due to its vast features, flexibility, security, and simplicity. It allows users to immediately start their trading plans with automated strategies or simply copy the portfolios and positions of top traders.

Key Features of Shrimpy

• Portfolio management: The platform supports automated portfolio rebalancing, allowing users to maintain a specific asset allocation without adjusting manually —a feature particularly convenient for those seeking consistent long-term portfolio performance.
• Social trading: The copy trading feature allows users to replicate successful traders’ strategies, which is especially helpful for new traders.
• Exchange integration: Supports over 30 cryptocurrency exchanges through a universal API. All accounts can be managed through a single dashboard.
• Analytics and data: Offers detailed portfolio tracking, performance analysis tools, and historical and live market data access.
• Backtesting and demo account: Like other bots, Shrimpy allows users to backtest strategies using historical data and practice with a demo account.

Fees and Security

Shrimpy offers three subscription plans:

1. Zero: A free account that offers unlimited spot trades and a restricted number of features, such as one exchange, one portfolio, three backtests per day, etc.
2. Standard: It costs $15/month and offers more options and features, including DCA and dynamic indexing while allowing for customizable rebalance periods.
3. Plus: It costs $39/month and offers complete API access, integration with 25 exchanges, over 100 backtests per day and more.

Regarding security, Shrimpy employs 2FA, API key encryption using FIPS 140-2 with hardware security modules, and IP whitelisting.

Pros and Cons of Shrimpy

Pros explained:

• A wide range of features, such as portfolio rebalancing, backtesting, social trading, and multi-exchange integration
• Secure API management with 2FA.
• Affordable pricing options.

Cons explained:

• No trading bot scripting.
• Web-based only, no mobile app so far.

TradeSanta

TradeSanta is a cloud-based platform offering AI crypto trading bots with advanced capabilities. The platform supports multiple exchanges, including Huobi, OKX, and Coinbase Pro, on which users can execute long and short-term strategies.

It also allows users to set up a bot in just five minutes using pre-set templates or build their own using customized parameters.

Key Features of TradeSanta

• Multiple bots with automated features: All TradeSanta Bots use predefined strategies to adapt to market conditions. There are grid bots, DCA bots, Futures bots, Arbitrage bots, and many more.
• Risk management tools: Provides basic features such as stop-loss, trailing stop-loss, and trailing take profit.
• Technical indicators: It offers well-known trading tools and indicators like the MACD, RSI, and Bollinger Bands that can adapt bots to different strategies/market conditions.
• Mobile app: One of the few trading bots that can be used on mobile devices.
• Demo and paper trading: Using paper money, users can test their strategies in actual market conditions.

Fees and Security of TradeSanta

TradeSanta follows a subscription-based pricing model:

1. Free: Supports 1-2 bots with basic features.
2. Advanced: $32/month, supporting up to 99 bots and more advanced features.
3. Maximum: $45/month, offering unlimited bots, priority support, all strategies without restrictions, and more.

Regarding security, TradeSanta uses API key restrictions that prevent bots from withdrawing users’ assets. Also, all API keys are encrypted using 256-bit AES encryption.

It also uses Cloudflare CDN as a layer of protection against DDoS attacks.

Pros and Cons of TradeSanta

Pros explained:

• 24/7 trading
• Customizable Strategies: Flexibility to design and implement personalized trading strategies.
• Built-in risk-management tools.

Cons explained:

• The 3-day trial period may not be long enough for new users to evaluate the platform entirely.
• Pricing: Subscription plans may be considered expensive compared to competitors.
• Limited exchange options, considering other bots support between 16 to 25 exchanges.

Coinrule

Coinrule is a drag-and-drop platform that allows users to create their trading strategies or AI bots without technical expertise or coding skills.

It offers a versatile and user-friendly solution for automated cryptocurrency trading. With an intuitive interface and pre-built templates, it supports custom strategies and flexible options for newcomers and professional traders.

Key Features of Coinrule

• Simple and user-friendly: Provides a drag-and-drop interface to allow users to design custom trading strategies. This feature comes with over 150 pre-designed templates available for quick implementation.
• Support for many exchanges: It integrates with over 10 cryptocurrency exchanges, including Binance, Kraken, Coinbase, and more.
• Marketplace: It allows users to access a venue to explore, buy, or sell trading strategies created by other traders. They can implement advanced trading tools to tailor the strategies to their needs.
• Backtesting: Users can test their strategies against historical market data. The program also provides a demo account for testing real-time markets using paper money.

Fees and Security

Coinrule operates on a tiered subscription model:

1. Starter: Free, with a capped $3,000 monthly trade volume.
2. Hobbyist: $29.99/month. $500,000 monthly trade volume
3. Trader: $59.99/month: $10 million monthly trade volume
4. Fund: $749/month: Unlimited trade volume

On the security side, Coinrule also uses API keys encrypted with 256-bit AES and private keys are stored in detached data storage, which is also encrypted with AES-256.

Pros and Cons of Coinrule

Pros explained:

• Access to a library of over 150 ready-to-use strategies
• Intuitive drag-and-drop functionality makes strategy creation simple for users of all levels.
• No coding is required to build trading strategies or create trading bots.
• Provides a vast amount of educational resources, including tutorials, strategy examples, learning materials, and more.

Cons explained:

• There are not a lot of exchanges to choose from compared to other bots.
• The limited demo exchange restricts the user from testing the platform’s capabilities.

Pionex

Pionex is an AI-powered platform where users can build their own AI trading bots without extensive technical expertise. All trading bots are free and have different strategies to meet different needs.

Key Features of Pionex

• The platform provides 16 free AI trading bots that can be set up without coding expertise. These bots come in different forms: Grid trading, DCA Bot, Arbitrage Bot, and much more.
• Cloud-based bots: All bots can trade automatically without constant human intervention, as they are based in the cloud, not on devices.
• Leveraged grid bots: Bots can perform grid trading with leverage to maximize returns, yet risks are considerably higher.
• Smart Trade allows users to set up take-profit, stop-loss, and other trading conditions for their bots.
• Customization: All bots can be customized per the user’s need, allowing them to change trading pairs, price ranges, investment allocation, risk management settings, etc.

Fees and Security

Unlike the platforms above, Pionex does not charge a monthly subscription. Instead, it uses a fee-per-trade model. Here’s a quick rundown:

• Trading Fees: Both maker and taker fees are set at 0.05% per transaction.
• Deposit Fees: Cryptocurrency deposits are free. However, credit card deposits incur a 3.5% fee for European users and 4.5% for non-European users.
• Withdrawal Fees: Cryptocurrency withdrawals have flat fees that vary depending on the coin.

There are no additional charges for using Pionex’s trading bots, but beware of withdrawal fees as they heavily depend on the asset.

Pros and Cons of Pionex

Pros explained:

• Bots are free to use and user-friendly, lowering the entry barriers for newcomers.
• Bots are easy to use and automated, saving time and energy as there’s no need for constant monitoring.
• No subscription fees, only standard trading fees applied.

Cons explained:

• Fees may be higher than most AI bots.
• No demo accounts nor backtesting capabilities.

Factors to Consider Before Choosing The Best AI Trading Bot

Choosing the best AI trading bot is not as simple as it sounds. Users must consider several factors to match the bot with their trading goals and risk tolerance.

Define Long-Term Goals

Users must first define their goals and risk tolerance. Are they looking for short-term or long-term price action? Second, how comfortable are they with market volatility or trades going south? These two factors are crucial because the bots and their strategies must match their objectives.

For instance, one particular trader may look into grid trading bots, popular for those seeking to profit from market volatility by repeatedly buying low and selling high as prices fluctuate. They are called “grid trading bots” due to the way orders are executed:

• When the price of Bitcoin (BTC) moves down and triggers a buy signal, the bot executes the buy order.
• But when it moves up and triggers a sell order, it sells at a profit, and so forth, as long as the price stays within a grid-like range.

On the other hand, dollar-cost averaging (DCA), as the name suggests, applies the DCA strategy by automatically executing buy orders at specific intervals —daily, weekly, monthly, etc.— without having to intervene to reallocate funds manually, specifying the amount per trade, which cryptos, etc.

Meanwhile, arbitrage bots are also quite popular as they profit from price differences across different exchanges.

In short, a DCA bot uses a passive, long-term approach suitable for those with a lower risk profile, while Grid bots are all about active, short-term strategies that profit from price oscillations. Finally, arbitrage bots constantly look for market inefficiencies.

Bot Fees Structures

It’s crucial to understand the bot’s fee structure. Is the bot subscription-based, transaction-based, or performance-based? Ignoring the fees could lead to unexpected costs that impact trading profitability at the end of the day.

To give an idea, bots charging subscription fees often range from $20 to $40 monthly, and some even charge $50. Meanwhile, bots that charge per trade could charge a 0.05% fee per transaction, which is the standard.

Performance-based bots are less common, but they have their charm — they only profit when the user does and don’t pay any fees or costs unless the bot is successful. That said, in periods of low profitability, they pay less (or nothing). However, the fees can be considerable when the bot is performing well.

In any case, the main issue with performance-based bots is that calculating and tracking performance fees can be burdensome or complex, depending on each bot and its reputation.

Bot Features

The best AI trading bots for crypto should have a minimum amount of key features to make the cut, and these are the ones to look at:

1. Supported exchanges: The bot should be compatible with the cryptocurrency exchanges it is used on, such as Binance, Kraken, Coinbase, etc.
2. Trading strategy: As explained in the first point, different bots specialize in various strategies, such as DCA, arbitrate, or grid trading. Users choose one that matches their current objective. The bot should also be able to trade 24/7 to capitalize on trading opportunities in different cryptocurrencies.
3. Backtesting: Once a user has decided on a bot, they must test it. They do this by backtesting the bot’s performance using historical data to determine whether the strategy has worked before using real-life money. If the bot developer offers a demo account to trade with paper money, that’s even better.
4. Customization: While bots have specific pre-designed strategies and integrations, they often allow users to create and modify trading strategies for their preferences.
5. Security and support: Ideally, the bot should support 2FA and good API key encryption for seamless integration with crypto exchanges (this helps with data protection and quicker setups). It should also support high-frequency trading without downtime or performance issues. Moreover, reliable customer support for troubleshooting and guidance would be a good addition.

Another common practice is to gauge reliability and community sentiment by looking for reviews and discussions on forums and social media.

Practice Common Security Practices and Oversight

While they are autonomous, it doesn’t mean they will magically make users rich overnight. Setting up trading bots requires consistent oversight, a clear understanding of their limitations, and the implementation of robust risk management strategies. Here are some rules to follow:

1. Proper API key management.

Users must never share or store their keys in plain text files to prevent accidental exposure. It is also a good practice to change API keys periodically to reduce the potential impact of a breach.

2. Implement strong authentication methods.

If the platform allows for 2FA, activate it —having another protection layer for the bot and the exchange accounts never hurts. To get the highest level of security possible, users can get hardware-based 2FA, such as YubiKeys.

3. Use reputable and updated software.

Users must use bots developed by well-established providers with a strong track record in security and regularly update the bot’s software to address any newly discovered vulnerabilities. If users plan to create their own bot, they must adhere to secure coding practices, conduct regular security audits, and stay informed about emerging threats.

4. Proper risk management.

Analyze trading logs regularly to identify anomalies or unexpected behavior. Use stop-loss orders and other risk management tools to limit potential losses during market downturns.

Also, it’s good to start small —trading with minimal capital and gradually scale up as they gain confidence in the bot’s performance and security. Users must remember that AI bots are autonomous, not perfect.

Conclusion: AI Trading Bots, Yay or Nay?

To summarize, AI trading bots are capable of delivering new solutions when it comes to automated crypto trading, while leveraging advanced algorithms in a bid to execute trades at high speeds and minimize human error.

Even though these bots are capable of helping users maximize their profits and reduce emotional decision-making, it’s also very important to choose the right bot that properly aligns with the set of personal trading goals, risk tolerance, and strategies.

However, users should also remain mindful of potential security risks and ensure proper oversight and risk management. With careful selection and proper use, AI trading bots can significantly enhance a trader’s ability to navigate the volatile crypto market.

The mix of decentralized finance (DeFi) and artificial intelligence (AI) has given birth to a new narrative in the crypto space called DeFAI, which, as the title suggests, focuses on leveraging AI agents to simplify the onboarding process for decentralized applications (dApp), which are often more complex than useful.

In other words, the fusion of AI with DeFi is gaining traction in the crypto market as it can simplify on-chain interactions for non-crypto users with the help of AI agents. The agents can potentially handle the entire workflow: from moving tokens across networks or swapping them to more complex tasks like identifying secure bridge protocols, optimizing swap routes, and even creating a liquidity pool on a lending platform.

This, at least ideally, would reduce the anxiety (and burden) often associated with complex DeFi operations.

But DeFAI is barely in its infancy, and many of these projects are evidently quite experimental. Nevertheless, this new narrative has become one of the hottest trends in the crypto space, with market analysts and researchers believing it could bring billions of dollars into the ecosystem.

Let’s find out what DeFAI is, how it works, and some top projects leading the ranks.

Quick Navigation

• • What is DeFAI?
  • Top DeFAI Projects in 2025
    • Griggain (GRIFFAIN)
    • PAAL AI
    • Hey Anon
    • AI16Z
    • Mode Network
    • Orbit
    • Neur
    • Autonolas
    • Gekko AI
  • Closing Thoughts: Top DeFAI Projects in 2025

What is DeFAI?

DeFAI, also known as AiFi, AgentFi, is one of the fastest-growing crypto ecosystems. Fun fact: it’s already a one billion dollar market, according to CoinGecko data.

Several projects are leading the charge, leveraging natural language processing and AI-driven automation to redefine user interaction and efficiency in DeFi:

So, where’s the value proposition, and what’s the TLDR? Right now, using DeFi often means jumping between different apps, connecting wallets, and manually entering all the details for every transaction. No matter how innovative, the average user experience in DeFi is often poor because it’s complicated and easy to mess up.

DeFAI changes that by letting users use simple commands like, “Swap 3 ETH for USDC” or “Invest in a liquidity pool” to an AI agent that will figure out all the details for, such as finding the best rates or options. All they have to do is approve the final action. This makes using DeFi as easy as sending a text message.

It’s like having ChatGPT for crypto. Users just tell a smart assistant to handle all the steps of a complicated task. For example, users might say, “Move my ETH to another network, swap some of it for USDC, and use it to earn rewards in a liquidity pool.” The AI agent will take care of everything:

• Choosing the best tools for each step.
• Making sure it’s secure and cost-effective.
• Sending the results back to your wallet.

DeFAI makes DeFi easier to use, even for beginners. It handles the hard parts, helps users avoid costly mistakes, and saves time as well. With tools like simple commands, smart assistants, and instant research, it opens the door for more people to take advantage of decentralized finance without feeling lost or overwhelmed.

Below are some of the top DeFAI projects that are currently trending in the crypto community.

Top DeFAI Projects in 2025

Griffain (GRIFFAIN)

Griffain was built on the Solana blockchain by Tony Plasencia, a veteran developer on Solana known for projects like Backan Underdog and Blink.fun.

Griffain offers several types of agents, which are divided into two categories:

• Personal agents: customizable models that can search for data, complete general tasks, and interact with blockchain applications.
• Special agents: are more advanced agents that can perform complex tasks, such as providing an in-depth analysis and reports on crypto narratives and trends, delivering news on crypto, simulating complex conversations in different languages, and much more.

All agents have one thing in common: they are designed to execute on-chain actions through natural language commands. For example, they can carry out copy trading, create memecoins from scratch, automate trading processes like profit-taking strategies, or just be your virtual assistant. The platform is a user-friendly gateway for simplifying complex on-chain activities, making it a pioneer in natural language-driven DeFi applications.

PAAL AI

PAAL AI is an Ethereum-based DeFAI platform that offers a wide range of advanced AI-powered features, including AI-powered chatbots and assistants:

• MyPaalBot: A personalized assistant that can act as a chatbot, moderator, researcher, and even community manager. It’s the most basic type of agent, but it can provide tailored insights and recommendations for different tasks.
• AutoPaal: A more advanced research and analysis tool that can be used to gain an edge with market insights and predictions for cryptocurrency projects and coins.
• PaalX: A decentralized in-chat trading feature enabling users to swap tokens, manage wallets, and view portfolios without leaving the chat interface.

The platform supports multimodal AI capabilities, processing information from text, images, audio, and video. This functionality enhances crypto analysis and aids in informed decision-making.

Another perk of PAAL is how customizable their AI agents are. Users can train their agents using their own custom datasets. Their multimodal capabilities allows them to understand and respond to different types of inputs, making them quite versatile in different applications.

Hey Anon

Hey Anon (ANON) is a multi-chain DeFAI project deployed on Sonic, Solana, Base, and Arbitrum. It focuses on natural language transaction interfaces, autonomous DeFi agents, and research tools.

The project has gained significant attention, partly due to its controversial founder, Daniele Sesta, who is known for creating multi-billion-dollar protocols like Spell and Wonderland in previous cycles.

Hey Anon plans to open its public beta by the end of January, supported by a $20 million AI Agent Fund from DWFlabs. So far, detailed features are scarce, but the project seeks to streamline DeFi interactions using AI-powered tools. As per its whitepaper, Hey Anon agents can be used for cross-chain interactions through LayerZero, get accurate price data through Pyth Network, and even borrow and earn using lending protocols like Aave.

As per CoinGecko data, it’s the third largest DeFAI project by market capitalization, exceeding $180M as of January 13th.

AI16Z

AI16Z is self-described as “the first investment DAO led by AI agents.” The project combines AI with decentralized governance to make autonomous investment decisions, which are carried out by an AI agent called Marc AIndressen.

While it has no relation to the VC firm Andresseen Horowitz (a16z), the agent is trained on data available about its co-founder, Marc Andresseen.

Marc operates as the central intelligence within the AI16Z ecosystem, managing a $28 million asset pool, and you can check the breakdown here. Moreover, the agent bases its decisions on a combination of data-driven analysis and inputs from token holders, who can also pitch investment ideas. Token holders with significant stakes in the ai16z token can influence the AI’s decisions via a mechanism called the “Virtual Marketplace of Trust,” which determines the credibility of user contributions.

At the core of AI16Z is ElizaOS, a framework that enables the creation of AI agents tailored for specific tasks. ElizaOS has gained significant traction, becoming one of the fastest-growing repositories on GitHub and surpassing projects like Google Gemini in Stars History, an important popularity metric.

The team is also considering launching an AI agent creation platform, similar to Pump.fun, using AI16Z as the primary currency, which became the first of its kind to reach a market cap of over $2B in the Solana network.

Mode Network

Mode Network brings AI-driven automation to Ethereum Layer-2s (L2), building a fully AI-operated DeFi economy. It’s one of the largest ecosystems with roughly 129 AI agents that have collectively executed over 1,600 DeFi transactions.

Some of these agents include:

• Arma by Giza: Optimizes USDC yield farming.
• Brian: Enables natural language execution of transactions and smart contract deployments.
• Sturdy: Aggregates and optimizes returns using AI-powered yield-bearing vaults.
• MODIUS by Olas: Supports launching or co-owning AI agents for liquidity farming strategies.
• Amplifi: Provides cross-chain liquidity and AI optimization for maximizing returns.

Orbit

Orbit (GRIFT) allows users to interact with protocols across over 100 chains, including all EVM-compatible networks and layer-1s like Solana, Aptos, Sui Network, and even Bitcoin.

It was developed by SphereOne, a crypto payment platform that raised $2.5 million in 2023. Orbit simplifies cryptocurrency onboarding and on-chain actions using AI agents, allowing users to perform key actions like:

• Swap and bridge tokens and bridge assets across several chains
• Stake to maximize returns using an advanced AI strategy
• Lend and borrow cryptocurrencies to earn interest or access liquidity
• Manage portfolios through an AI agent that can track, gather, analyze data, and optimize positions and strategies.

Neur

Neur is an intelligent copilot for Solana, focusing on natural language interfaces for DeFi.

The project leverages cutting-edge AI power from some of the most advanced models, including Claude 3.5-Sonnet and GPT-4o, using it to monitor and analyze Solana-based data in real-time and perform automated actions. The cherry on top is that users can connect Neur with practically every Solana dApp.

Its GitHub presence has grown despite being in beta, earning 350 stars. So far, the project incentivizes developers to contribute to its security and features through bounties. Yet, early Access requires a fee of 1 SOL, providing limited functionality during this phase.

Autonolas

Founded in 2021, Autonolas (OLAS) is a robust AI and crypto platform with a simple purpose: creating autonomous AI agents that can decentralize AI-driven economies to serve human needs.

Autonolas provides a robust framework for developing and managing autonomous AI systems through its Olas Stack and Olas Protocol, which provide the foundation for creating, deploying, and co-owning the AI agents. The project’s architecture is built around the following core components:

1. Agent Services: Independent programs working together to achieve specific goals.
2. Composable Autonomous Apps: Extendable and modular applications that can be combined to create more complex systems.
3. On-Chain Protocol: Ensures the security of agent services while incentivizing developers to contribute code.

Moving on, Autonolas’ agents are quite versatile, making them useful for several tasks and protocols, including but not limited to

• Automated Portfolio Management: AI agents can manage and rebalance investment portfolios, optimizing returns while reducing manual oversight.
• DAO Governance Participation: Services like Governatooorr enable AI agents to engage in decision-making processes within Decentralized Autonomous Organizations (DAOs).
• Payroll Management for DAOs: AI agents can streamline payroll operations, ensuring efficient and error-free fund distribution.
• Cross-Chain Operations: The technology supports complex workflows across multiple blockchains, maintaining seamless operation for diverse tasks.

Gekko AI

Gekko AI was developed by Axal and built on the Virtuals protocol. It aims to simplify and enhance cryptocurrency trading through automation, transparency, and analytics to create advance strategies for the market.

At its core, Gekko AI is designed to provide a seamless and efficient trading experience leveraging Axal’s AI trading platform, introducing tools that automatically analyze markets and execute trades on users’ behalf.

Its AI-driven trading system monitors and interprets market trends 24/7, executing trades based on real-time data and predefined strategies. Users can also take advantage of Axal’s Autopilot system to create custom trading agents tailored to their specific needs and risk preferences.

Closing Thoughts: Top DeFAI Projects in 2025

The fusion of DeFi and AI could become the next catalyst for the cryptocurrency industry as a whole just by simply leveraging the rise of AI agents to streamline traditionally complex on-chain processes.

DeFAI is simple: reduce the steep learning curve of DeFi with AI Agents. Whether automating workflows, optimizing transactions, or enabling interactions with natural language just like ChatGPT, this innovation could transform how users tap into the blockchain and DeFi worlds.

However, notice this sector is quite young, and most projects haven’t fully established themselves with finished, or fully shipped products. It’s very early, but the ecosystem is growing exponentially, with many market analysts predicting significant growth in the coming years.

By Sandra Grabowiec

When Web3 first emerged in 2014, with the term coined by Ethereum co-founder Gavin Wood, it was heralded as the genuine next evolution of the internet. It promised a decentralized, user-centric ecosystem where individuals could take back control of their data, finances, and social interactions, while potentially being rewarded for doing so thanks to unique token economics.

Now, a decade later, as the dust settles, a provocative new thesis is emerging – Web3 was never really built for humans – its architecture was predestined for AI agents. Whether intentional or accidental, the notion seems quite fitting considering the never-ending Web3 conundrum of UX being the main hurdle to mass adoption. So there you have it – all we need to do is take humans out of the equation and Web3 is hurdle-free.

All of a sudden Web3’s additional complexities, like trustless transactions, decentralized infrastructure, and inherent programmability, seem far better suited for AI-to-AI interactions. Take a step back to assess this idea and you’ll find it hard to argue that Web3’s architecture looks like it was designed for a future where AI agents are the primary drivers of economic activity.

The AI-to-AI Transaction Paradigm

The shift from human-centric to AI-driven economic interactions has been underway for some time now. In this new paradigm, transactions won’t be initiated, negotiated, or executed by humans (or businesses), but rather by autonomous AI agents working on their behalf.

Imagine a world where your AI assistant can haggle and barter with another AI to get you the best price for a particular service or product. In that world, it’s easy to see how AI agents could quickly take over entire supply chains, operating rapidly and collaboratively over decentralized networks. These would be the first signs of a new AI economy model, one with scalable microtransactions and dynamic real-time pricing systems. And it’s not a far-fetched reality. These AI-to-AI transactions are already happening.

The implications are profound. AI agents don’t need a lunch break or to sleep eight hours a night – they’re on 24/7. They don’t have trouble balancing monumental data loads, executing precise transactions, or managing hundreds or thousands of interactions simultaneously. But, what they do need is infrastructure, and that appears to be Web3’s important role.

Exploring the Architectural Alignments

It’s hard to argue against the case that Web3’s foundational traits make it uniquely suited for the AI economy. Starting with trustless transactions, it’s becoming more and more apparent that AI agents thrive in environments where trust is fully codified and verified, not just assumed. In addition, DLT ensures that AI agents don’t need intermediaries or third-party verification to do their finest work.

Fully decentralized systems, where no single entity has control, are also optimal for AI agents. Here, with distributed architecture to enjoy, they can act and move freely, released from the shackles and bottlenecks of centralized gatekeepers, even if there are still instances where autonomy is not a given for some agents like Truth’s Terminal. It is also here that they are able to execute complex transactions autonomously, across all platforms, protocols, and chains, potentially forming the backbone of the new AI economy. The idea is simple: let AI agents roam all available avenues to get the best results.

This is what Outlier Ventures calls “The Post Web” in a recent report, while also predicting that, “In The Post Web’s Intention Economy; intent-based AI agents prioritise users’ true needs, aligning counterparties with user intentions and enabling efficient, value-driven interactions with minimal extraction and rent seeking.” Sounds exciting? Because it truly is.

The Revolution Will Be Found On-Chain

It’s no longer a theoretical future where the onchain environment is the go-to playground for AI agents, especially those focused on trading. Right across the DeFi landscape, protocols are rapidly updating their infrastructure to accommodate AI-driven interactions. In fact, many cryptocurrency projects that previously had nothing to do with AI agents are now making pivots into the space, competing with established AI developments for mind and market share.

To keep up, DeFi projects must develop be AI-Agent-ready and they’re already exploring ways to do that via APIs and SDKs. There is an accelerating demand for infrastructure that can support AI agents as they begin to interact directly with blockchain networks on activities like automated trading and decentralized governance. It’s not enough to be human-friendly anymore. AI-friendly is the new instruction.

The Future Outlook

The future of Web3 is one where AI agents dominate economic activity. Shifting to that future, however, will involve brand new challenges and opportunities. On one hand you have serious questions about accountability, governance, and the human workforce in a machine-dominated world, while on the other you have the perks of unprecedented efficiency and innovation.

Now, whether by accident or design, the decentralized, trustless, and programmable nature of Web3 is perfect for the AI future. Outlier Ventures neatly summarizes the situation, stating, “We can look at a decade of Web3 as a battle hardening of a human-tested stack of distributed architecture and incentive games from smart contracts, token economics, DAOs, and DeFi. While too complex for people themselves to operate at scale, the stack is primed for AI and the agentic internet.”

All we can do now is understand where we, as users, fit in this new paradigm and watch it play out in real-time.

Author bio

Sandra Grabowiec serves as the Head of Partnerships at Singularity Finance, a project within the SingularityNET ecosystem that is building a financial layer for AI, tokenizing the AI economy, and developing intelligent multi-asset vaults.

Her journey in blockchain began in 2018, sparked by preparations for a conference where she explored technological development dilemmas using blockchain, specifically Bitcoin, as a case study. She went on to write her thesis on the impact of smart contracts on business process automation in B2C e-commerce and later earned a Master’s degree in Blockchain and Digital Currency, further solidifying her expertise in decentralized technologies.

As a speaker, Sandra frequently addresses topics related to the tokenization of real-world assets (RWAs) and is a dedicated mentor to those new to Web3. She supports Polish Blockchain Associations through educational and mentoring initiatives and also serves as a Web3 consultant at a software house, where she advises clients on go-to-market (GTM) strategies and product positioning.

Crypto staking is the backbone of every Proof-of-Stake (PoS) blockchain. Without it, most crypto networks wouldn’t be able to secure their primary mechanism for security and transaction validation. That’s how important it is.

Staking also ensures that validators have a financial incentive to act honestly, as their staked tokens can be slashed, either partially or fully, for engaging in malicious behavior or failure to perform their respective duties.

Another key point is that staking is crucial for keeping blockchain ecosystems decentralized. It provides a structured way to reward participants for contributing to a network’s health and overall functionality.

This article takes a deep dive into the best crypto staking platforms, each reviewed carefully by their functionalities and amount of assets supported. It also goes through the basics of staking and how to stake crypto in multiple ways.

Quick Navigation

• • What is DeFi Staking?
  • Benefits of Crypto Staking
  • Best Crypto Staking Platforms in 2025: Our Top Picks
    • Jito – Solana’s Largest Liquid Staking Platform
    • EigenLayer – The Restaking King
    • Lido Staking
    • Binance Earn
    • Ethena – A Yield-Bearing Stablecoin Backed by Crypto
  • How to Stake Crypto In a Few Steps
    • Staking With Crypto Wallets
    • Using a Staking Platform
    • Node Staking
    • Exchange Staking
  • Frequently Asked Questions

What Is DeFi Staking?

Staking is the process of locking up cryptocurrency in a wallet to help secure and maintain a blockchain network that uses a Proof of Stake (PoS) consensus mechanism. In return for committing your tokens, you earn rewards—typically in the form of additional cryptocurrency. By staking, you contribute to the network’s security, validate transactions, and help create new blocks on the blockchain.

In essence, staking incentivizes honest behavior. Users who stake their coins can gain rewards for supporting the network, while malicious or negligent validators risk having their tokens “slashed” (i.e., a portion of their stake is removed). This setup encourages active participation and maintains the blockchain’s integrity.

Benefits of Crypto Staking

There are several advantages to crypto staking, not just for users but also for blockchain networks and DeFi protocols:

• Passive yield generation:

Staking allows you to earn rewards without selling cryptocurrency, creating a consistent passive income stream. If reinvested, these rewards can compound, boosting your overall returns.

• Higher returns:

Depending on the blockchain and market environment, annual percentage yields (APYs) can range from single digits to over 20%, making them a more lucrative option than many conventional financial instruments.

• More accessibility and network support:

Unlike PoW blockchains, staking requires no specialized hardware or heavy energy use because PoS networks only require relatively smaller amounts, making it accessible to a broad range of participants.

Moreover, by locking up tokens, you help validate transactions on the blockchain, protecting it against threats like 51% attacks and maintaining long-term stability. This rewards users for their role in network health.

• Liquidity options:

Liquid staking derivatives (Lido’s stETH, Rocket Pool’s rETH, etc) let you access your staked assets in DeFi while still earning staking rewards, providing flexibility for additional trading or lending activities.

• Restaking:

Some popular protocols like EigenLayer allow you to “restake” your already-staked tokens, using them as collateral or deploying them in other staking systems. This strategy can compound yields further and increase engagement within the DeFi ecosystem. But, the biggest perk is that restaking allows DeFi projects to leverage the security and capital of already established networks.

This will be explained further in the article, but for now, note that restaking is far more complex than traditional or liquid staking, requiring more responsibilities and technical knowledge to carry out the process.

Best Crypto Staking Platforms in 2025: Our Top Picks

Below are some of the best staking platforms, providing a comprehensive breakdown of their features, supported assets, and other important information.

Jito – Solana’s Largest Liquid Staking Platform

Jito is the largest liquid staking platform on the Solana blockchain. Participants stake SOL and receive JitoSOL in exchange, which is a liquid staking token (LST) that can be used in other Solana-based dApps. This allows users to lock their staked tokens but use a tokenized version in other DeFi projects to generate more yields.

The project’s MEV approach—often controversial—has drawn attention. Some critics argue that MEV exploits traders by front-running orders or reordering transactions, while others see it as a way to improve market efficiency and ensure lenders are repaid.

Jito tackles MEV by implementing an auction system where traders bid on profitable transaction sequences. Third-party block engines simulate these bids to identify the most valuable transaction groupings. The resulting profits are funneled back to validators and JitoSOL holders, effectively curbing spam benefits and increasing staking rewards.

Key Features of Jito

• Liquid staking with JitoSOL: Users stake SOL and receive JitoSOL, representing their staked assets. JitoSOL can be deployed across DeFi (e.g., lending, trading, or liquidity pools) while continuing to earn staking rewards.
• MEV Integration: Jito captures MEV by optimizing transaction ordering within blocks, redistributing extra revenue to JitoSOL holders, and boosting overall staking yields.
• Full decentralization: The protocol’s governance token, JTO, grants holders voting rights on delegation strategies, treasury management, and protocol updates, while the Jito DAO ensures community-driven oversight.
• Security and transparency: Jito relies on audited smart contracts and delegates SOL to established validators within the Solana ecosystem. Governance by the Jito DAO further enhances transparency.

Supported Assets

Given Jito’s exclusive integration with the Solana blockchain, it only supports SOL tokens.

EigenLayer – The Restaking King

EigenLayer is a middleware protocol built on Ethereum that pioneered the idea of restaking, meaning you can deposit staked ETH (like stETH) into a new set of liquidity pools. These staked tokens are then distributed across various decentralized applications or AVS (Actively Validated Services), oracles, Layer 2s, data availability layers, cross-chain bridges, and more.

By doing so, EigenLayer allows these services to tap into Ethereum’s robust security without creating their own separate validator networks.

Key Features of EigenLayer

• Restaking marketplace: In a sense, EigenLayer is a sort of marketplace where validators and protocols negotiate pooled security for a cost. Protocols can buy staked tokens or stETH as an “extra layer” of security. Meanwhile, validators can choose which protocols they want to secure, evaluating them for risk and reward. They also control how much staked capital is allocated, preventing overexposure to any single protocol.
• Flexible staking options: Users can opt for solo staking, run their own nodes, delegate their stake to third parties, and even perform dual staking, requiring both ETH and a native token to be staked. This way, the protocol welcomes more advanced validators, users, and developers.
• Programmability: Developers can customize validation rules and security parameters for their EigenLayer-based applications, allowing for more nuanced protection, including multi-token quorums tailored to specific risk profiles.
• Modular security: EigenLayer supports a modular approach, letting stakers secure specific functionalities or “modules,” such as decentralized storage, DeFi applications, or cross-chain bridges. This flexibility tailors security to each project’s unique requirements.

Supported Assets

EigenLayer only supports ETH, any ERC-20 token, and liquid staking tokens such as Lido’s stETH and Rocketpool’s rETH.

Lido Staking

Lido is the largest decentralized liquid staking platform in the industry, reaching a peak of roughly $40B in total value locked (TVL) in mid-2024, representing a massive share of the total DeFi TVL.

Lido’s appeal is straightforward: It allows users to earn staking rewards on various PoS cryptocurrencies without requiring them to unstake their assets. This makes Lido the pioneer of liquid staking: The protocol issues a tokenized version of ETH, stETH, which represents the staked assets.

Users can deploy stETH across several DeFi projects in Ethereum, allowing them to earn additional yield on top of their staked assets.

Key Features of Lido

• Liquid Staking: When you stake with Lido, you receive a derivative token, like stETH, on a 1:1 basis. Moreover, users can stake any amount of crypto, except for validators, which require the typical 32 ETH deposit.
• Validator Distribution: Staked tokens are spread across a network of professional validators chosen by the Lido DAO, reducing risks tied to validator downtime or slashing penalties.
• Open source and audited: Lido’s smart contracts are publicly available and regularly audited. Audits can be found on GitHub.
• Fee structure: Lido charges a 10% fee on staking rewards, which is shared between node operators and the Lido DAO treasury.

Supported Assets

Lido supports a wide variety of crypto assets, including:

• ETH is the most widely used staking option on Lido.
• Polygon (MATIC): Tokenized as stMATIC.
• Kusama (KSM): Tokenized as stKSM.
• Polkadot (DOT): Tokenized as stDOT.

However, support for SOL was discontinued due to disagreements and community votes over unsustainable long-term fees on both blockchains.

Binance Earn

Binance Earn is a yield-focused offering within the Binance ecosystem, designed to help both novice and experienced investors earn passive income on their cryptocurrency holdings.

It serves as a one-stop solution for several investment products, championed by its extensive staking program, where users can choose Locked Staking, where they deposit their crypto for a set duration (e.g., 30, 60, or 90 days) to earn higher rewards.

Key Features of Binance Earn

• DeFi and liquid staking: Connects users to external protocols, offering higher APYs but carrying general risks associated with using these DeFi platforms. Binance also supports ETH 2.0 Staking, enabling participants to stake Ethereum without operating their own validator node; in return, users receive BETH as a tokenized representation of their staked ETH.
• Savings products: Besides staking, Binance Earn provides Flexible Savings, which allows immediate access to funds but offers more modest interest rates. Locked Savings, on the other hand, require users to commit their assets for a predefined period in exchange for higher yields.
• Dual investment: The platform offers more advanced products like Dual Investment, a high-yield option involving two different cryptocurrencies with returns contingent on market conditions.
• BNB Vault: A popular feature for Binance Coin (BNB) holders. It combines blending staking, savings, and liquidity farming all in one to maximize returns on BNB holdings.

Supported Assets

Binance Earn supports over 180 cryptocurrencies up for staking, including major assets like Bitcoin, Ethereum, Solana, and Cardano, as well as stablecoins such as USDT and USDC.

Ethena – A Yield-Bearing Stablecoin Backed by Crypto

Ethena USDe is a synthetic dollar stablecoin built on Ethereum, designed to maintain a 1:1 peg with the U.S. dollar through delta-neutral hedging and on-chain collateral.

Launched by Ethena Labs, the platform offers a censorship-resistant alternative to traditional stablecoins. It is backed entirely by crypto assets such as ETH, BTC, and liquid staking derivatives.

Key Features of Ethena

• USDe: Ethena’s USDe employs a delta-neutral hedging model to balance any fluctuations in the value of its underlying collateral. The protocol takes short positions on derivatives contracts to keep the stablecoin pegged at $1 without depending on fiat reserves or traditional custodians.
• Crypto collateral: All minted USDe is backed by on-chain cryptocurrencies, including ETH, stETH, BTC, and various other stablecoins. This maintains a consistent ratio of collateral to outstanding tokens.
• Yield-bearing token: One of Ethena’s most popular offerings is the ability to stake USDe to earn sUSDe, a yield-bearing derivative token that appreciates over time. All returns on investments are generated through 1) Ethereum staking rewards and 2) the funding spreads earned through delta-neutral derivatives positions. The staking process follows the ERC-4626 Token Vault standard.
• Insurance fund: Ethena is one of the few DeFi protocols to offer a reserve fund that acts as a buyer of last resort. This fund is a safety net in case of extreme scenarios, like negative funding rates or sudden market shocks.

Supported Assets for Staking

Ethena supports staking primarily with its native token, USDe. Upon staking, users receive sUSDe, which captures accumulated rewards from both derivatives funding spreads and Ethereum staking yields.

How to Stake Crypto In a Few Steps

There are several ways to stake crypto. But whichever way, you must first get a proper crypto wallet to begin your staking journey. You can look at our guide on the best DeFi wallets to analyze and compare some of the top options in 2025.

Staking With Crypto Wallets

Some crypto wallets like Trust Wallet, Exodus, and Phantom allow you to stake assets directly without leaving the app.

For example, if you want to stake using the Phantom wallet, simply go to your account and choose an asset. Next, click on the asset and select Staking.

Phantom offers two options: native staking, where you simply lock up assets in the Solana blockchain, and liquid staking using Jito.

If you choose native staking, then you have to pick a validator. The Phantom Validator is the most popular due to its trustworthiness and security, but rewards are usually lower. Afterward, just enter the amount you wish to stake. Note that with native staking, your assets are locked, so you cannot use them across dApps for extra yield until the cooldown period ends.

On the other hand, staking with Jito may result in bigger rewards and lower fees. Once you deposit your assets, you’ll get JitSOL, which you can use across DeFi protocols to win some extra rewards.

Using a Staking Platform

Using a crypto wallet, you can join a crypto staking pool where users deposit their funds to increase the chances of earning rewards. This is ideal for those with smaller amounts of crypto or who can’t meet minimum staking requirements in a given protocol.

For example, if you want to stake ETH, you can simply go to Lido, choose the number of tokens you wish to stake, click on proceed, and, once you have done so, receive stETH tokens representing the staked amount. This allows you to use the tokenized version of your funds across Ethereum-based DeFi protocols.

Node Staking

Node staking is more complicated and reserved for those who run a validator node on Solana or Ethereum. This means validators get to stake their own currency plus the currency of other liquid stakers. You earn rewards on your own staked assets and a commission fee based on the rewards your node generates for liquid stakers.

One of the best pools for node staking is Rocketpool, one of the largest ETH staking pools. It requires at least 16 ETH to operate a node but comes with a 14% cut from rewards. Other platforms are StakeWise V3 and Marinade Finance for Solana users.

Exchange Staking

An alternative option would be centralized staking, in which exchanges like Binance or Coinbase handle the staking process on your behalf, simplifying the experience but requiring trust in their security measures.

For instance, Binance Earn allows you to choose from different staking products, from popular cryptocurrencies to stablecoins, with different durations and APRs.

Frequently Asked Questions

Can I Unstake My Assets?

Yes, you can unstake assets after a cooldown period, which depends on the protocol you’re using. This is to prevent validators from immediately withdrawing their funds, which could allow malicious actors to avoid penalties, such as slashing. It also helps maintain economic stability by preventing large-scale, sudden withdrawals.

What’s the Difference Between Native Staking and Liquid Staking?

Native staking requires the user to lock assets to generate rewards. Meanwhile, Liquid staking platforms give users a tokenized version of their already staked assets, which can be used across different DeFi projects, boosting their earning potential.

What Makes Restaking More Complex Than Traditional Staking?

Restaking allows you to reuse already staked tokens as collateral in other protocols. This allows users to compound rewards while offering extra security for multiple decentralized applications and blockchain protocols. The issue is that restaking requires a lot of technical expertise in DeFi since the user is interacting with multiple smart contracts and DeFi projects and must manage a higher level of risk.

A Bitcoin mining pool is a group of miners who combine their computational (hash) power to boost their chances of mining new blocks. To explain more simply, the miners connect the mining hardware at the pool’s server rather than creating your own. Moreover, the pool rewards are distributed among participants based on how much hash power each provides.

Mining pools emerged as Bitcoin mining became more competitive and resource-intensive, making it difficult for smaller, solo miners to earn consistent rewards. Without considering the expense of energy and power supplies, the user would need considerable resources and capital to earn a consistent, lucrative reward.

Quick Navigation

• • Benefits of Joining a Mining Pool
  • How Does Bitcoin Mining Work?
  • How are Rewards Distributed in Bitcoin Mining Pools?
  • Risks of Using Bitcoin Mining Pools
  • Best Bitcoin Mining Pools
  • Foundry USA
  • AntPool
  • ViaBTC
  • Luxor Mining Pool
  • F2Pool

Benefits of Joining a Mining Pool

1. Consistency: More frequent rewards compared to solo mining.
2. Accessibility: You can participate without massive hardware or electricity investments.
3. Assistance: Many pools offer less-experienced miners support, tools, and guidance.

Mining pools also enhance network security by increasing the number of miners involved, maintaining decentralization, and preventing any one entity from dominating the blockchain.

It’s a tough market out there for miners, given how fierce the competition is, which is why most would opt for pool mining due to steadier returns while still contributing to the network’s security and decentralization. But, like anything in life, there are a few pros and cons to each:

Solo mining pros:

• Full control over any mined rewards.
• No fees to a pool operator.

And cons:

• Irregular rewards; potentially very long gaps between successes.
• High cost for hardware and electricity.

Pool mining pros:

• More consistent earnings due to collaborative efforts.
• Lower initial investment compared to solo mining.

And cons:

• Pool fees reduce overall profit.
• Less autonomy since the pool operator often makes decisions.

How Does Bitcoin Mining Work?

Now that the basics have been explained, it’s time to dive a bit deeper into the specifics. To explain how Bitcoin mining works, let’s use setting up and joining a BTC mining pool as an example.

Choosing a Bitcoin Miner

Most Bitcoin miners use ASIC devices, like an Antminer S19 or S9, because traditional GPUs and CPUs are no longer profitable for BTC mining. The mining rig should meet current efficiency standards to stay competitive.

Moving on, match your power supply unit (PSU) to the miner’s power draw. For instance, an Antminer S9 can consume approximately 1,375 watts, so a robust and reliable PSU is essential.

Next, set up a stable, wired Ethernet connection (recommended) to minimize downtime and ensure your rig can communicate consistently with the pool’s servers. This is because your shares (i.e., your units of work to prove your contribution to solving the cryptographic puzzle) must be submitted as quickly as possible, and wireless connections may experience interruptions due to multiple elements (physical obstacles, high latency, inconsistent bandwidth due to network congestion, etc.).

Miner Settings and Pool Navigation

Naturally, you want to plug in the miner and the PSU and connect an Ethernet cable to your local network. The next step is to use a network scanner, like Angry IP Scanner, to find your miner on your local network.

The tool will scan your network and show the IP addresses of all connected devices. Find the miner’s IP address and enter it into a web browser to open its control panel. Miners have default login details, often “root/root” username and password, but you may want to immediately change these credentials for security so no one else can access your miner.

Selecting a Bitcoin Mining Pool

New miners should research pools based on fees, payout schemes, security measures, and server geography. Some of the best Bitcoin mining pools include F2Pool, Foundry USA Pool, and Slush Pool.

Once you’ve selected a pool, you must create your worker credentials, which are basically your username and password. Your username (should be) often a combination of your pool account name and an optional “worker” identifier (e.g., account_name.worker_name), but the password can be of any value (or the one suggested by the mining pool).

Configuring the Miner

Next, check the pool’s website and go to the dashboard to check the list of Stratum addresses. This is a URL protocol that your miner will use to submit work and receive tasks. While mining pools offer a general/default Stratum URL, ideally, you want to choose the closest server geographically due to lower latency and better efficiency.

For example, in North America, it should be something like this:

stratum+tcp://btc-na.f2pool.com:3333.

In your rig’s control dashboard, go to miner configuration or settings and enter the Stratum address specific to your chosen mining pool, along with your pool username and password.

After saving, your miner will begin directing its hashing power toward the pool.

Linking a Bitcoin Wallet

Connect your Bitcoin wallet address to the pool. This can be part of your account profile on the pool’s website. Some pools allow participants to set a minimum payout threshold, controlling how often their earnings are sent to their wallets.

If you don’t have one already, check out our guide on some of the best Bitcoin wallets in 2025, from hot to cold solutions.

Starting the Mining Process

After it is configured, your miner will send shares (the units of work) to the pool, which aggregates all participants’ hashing power to find valid blocks. In return, you receive a percentage of block rewards proportional to your contribution. The more you contribute, the more you are rewarded.

You can monitor your miner’s performance either through its own interface or the pool’s website.

How Are Rewards Distributed in Bitcoin Mining Pools?

There are three types of payout models for rewards. Each approach involves specific trade-offs concerning fees, rewards, and risk:

1. Pay-Per-Share (PPS): With PPS, you receive a fixed, predetermined payout for every share your mining hardware submits to the pool. The pool operator absorbs the risk of whether a block is actually found, offering you predictable and steady income.
2. Full Pay-Per-Share (FPPS): FPPS builds on PPS by paying a fixed rate per share and including an estimated share of transaction fees in addition to the block reward. This method offers even more predictable earnings by smoothing out the variability of transaction fee income, but it can come with slightly higher fees since the pool operator is assuming more risk.
3. Pay-Per-Last-N-Shares (PPLNS): This method pays out only when the pool finds a block, distributing rewards based on the proportion of the last N shares submitted by all miners. Your payout can fluctuate. If the pool is unlucky or you disconnect before a block is found, your earnings for that period may be low or zero. Over time, however, this method can yield higher rewards during lucky periods.

How to Choose the Proper Payout Method

Choosing a reward distribution model is as important as choosing the right pool. There are four main points to consider: risk tolerance, fees, mining goals, and dependency on operators, which can be summarized as follows:

• PPS and FPPS are good fits for those who prefer a steady income and avoid fluctuations tied to block discovery. However, PPS and FPPS pools tend to charge higher fees because they assume more risk but pay their participants regardless of block discovery.
• However, PPLNS pools offer lower fees but are much more volatile. They often have uneven payouts depending on how often the pool finds blocks. In other words, the more blocks that are found, the higher the yield.

Generally speaking, there are two reasons why a miner would choose PPs or FPPS: either they have limited resources, or they want predictable, steady income. However, those with substantial hashing power and resources often gravitate toward PPLNS because of the bigger yields. This maximizes overall earnings in times of bullish market activity but accepts some short-term uncertainty, all in exchange for the biggest rewards.

Risks of Using Bitcoin Mining Pools

When using a BTC mining pool, there are three main risks miners should be aware of.

• Power concentration

It’s no secret that large pools can dominate the share of the Bitcoin network’s total hashrate. Such a concentration of power defeats the purpose of decentralization, as a few entities wield increased influence over transaction validation and block production.

Another risk to consider is chain and pool manipulation. Pools may commit certain unethical practices, like withholding valid blocks to gain an advantage or censoring specific transactions to compromise the network’s security and trustworthiness. Moreover, operators hold significant control over reward distribution, and those dishonest may manipulate payouts, delay rewards, or even vanish with participants’ funds (in what is known as an exit scam).

• Security concerns:

When assessing any mining pool, it’s prudent to verify its track record of uptime, the security measures in place, such as advanced Distributed Denial-of-Service (DDoS) protection, and its history of handling potential threats. In that sense, a secure and dependable pool protects your earnings and operational consistency.

A pool experiencing repeated disruptions (DDoS attacks, most often) can lead to server downtime, impacting profits. For instance, in 2020, Poolin, one of the largest Bitcoin mining pools at the time, suffered a DDoS attack in which the pool’s servers were flooded with malicious traffic. This caused downtime and a loss of revenue for participating miners.

• Pool reputation

In addition to the above, researching a pool’s reputation and transaction history is always a fundamental step before joining one.

But even so, there’s no guarantee that a reputable mining pool won’t engage in questionable behavior. For instance, F2Pool, a leading miner in terms of network hashrate, drew criticism back in 2023 when it began filtering transactions linked to addresses sanctioned by the US Office of Foreign Assets Control (OFAC). It was found that the pool excluded specific transactions from its blocks, imposing external compliance measures within what is intended to be a neutral, decentralized network.

Needless to say, this action ran counter to Bitcoin’s principle of censorship resistance, sparking community backlash. F2Pool eventually halted its filtering patch, but the point remains the same.

Best Bitcoin Mining Pools

Some of the top Bitcoin mining pools are listed below, according to their hashpower, popularity, payouts and fees, security, and key features, among other crucial considerations.

Foundry USA

Foundry USA is the largest Bitcoin pool in 2025, controlling over 30% of the network hashrate.

Key Features

• Institutional-grade services: In addition to standard pool operations, Foundry offers treasury management, BTC custody, and derivatives products, which are mostly targeted at large-scale enterprises.
• Security and compliance: Foundry has SOC 2 Type 1 and Type 2 certifications, which means strong internal controls and operations. Moreover, all members must fulfill Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements before joining, which may deter miners who prefer anonymity but provides a safer environment for both retailers and mining companies.
• Transparency and reliability: Detailed fee structures, exportable data, and in-depth analytics. This allows miners to evaluate and track their performance much more efficiently.

Fees and Payment Methods

Foundry USA has a tiered structure that adjusts rates according to a miner’s quarterly average hashrate. Deductions come from the FPPS payouts, including newly minted Bitcoin, e.g., block subsidies and transaction fees. Under FPPS, miners benefit from regular and predictable payments credited daily.

Moreover, a 0.001 BTC minimum payout threshold makes Foundry approachable for smaller-scale operations, allowing frequent distributions even for those not contributing massive amounts of hash power.

Hashrate and Supported Equipment

Foundry USA is the largest mining pool, contributing roughly 277 to 280 EH/s to the Bitcoin network. This means it finds blocks quickly, providing reliable payouts for participating miners.

The pool supports various popular ASIC miners, including Antminer S19 models, WhatsMiner M50 series, and AvalonMiner rigs.

Pros and Cons

Pros explained:

• Stable FPPS payouts, which include transaction fees
• High-level security with SOC certifications and robust compliance measures
• Institutional services, providing lending, custody, and advanced financial products
• Advanced analytics and tools for miners

Cons explained:

• KYC/AML requirements, which can be off-putting for certain miners
• Holding over a third of the network hashrate means the pool has a massive influence on the Bitcoin network

AntPool

AntPool, launched by Bitmain Technologies in 2014, remains one of the most influential Bitcoin mining pools.

As of early 2025, it commands close to 19% of the network’s total hashrate, providing miners with a robust infrastructure and multiple reward structures. Although primarily focused on Bitcoin, AntPool also supports other proof-of-work cryptocurrencies.

Key Features

1. Multi-currency support: In addition to Bitcoin, AntPool supports Bitcoin Cash (BCH) and Litecoin, among other popular PoW options.
2. Global server: AntPool operates servers worldwide, helping reduce latency and stale shares. This network design contributes to more stable performance, regardless of a miner’s geographic location.
3. Daily payouts and reliability: Once a miner’s balance reaches 0.001 BTC, earnings are sent out every 24 hours. Security measures include two-factor authentication (2FA), DDoS protection, and wallet locks, all of which safeguard user accounts.
4. Tools and resources for miners: The dashboard offers real-time hashrate metrics, detailed income histories, and integrated profitability calculators. These features simplify monitoring and help users fine-tune their operations.

Fees and Payment Methods

AntPool offers three payout schemes, and they come with varying fees, influencing individual earnings:

• PPLNS: 0% fee (transaction fees not included).
• PPS+: 2.5% fee.
• FPPS: 4% fee.

Miners receive payouts once they exceed the 0.001 BTC threshold. Distributions occur daily after that balance is reached.

Hashrate and Supported Equipment

With a reported output of approximately 132.7 EH/s, AntPool contributes close to 19% of the total Bitcoin network hashrate. AntPool accepts many ASIC miners, including Bitmain’s Antminer series (S19 Pro, S19 XP), WhatsMiner (M50), and AvalonMiner devices. Although it is developed by Bitmain, other SHA-256 ASIC rigs can connect without issue.

Pros and Cons

Pros explained:

• Multiple payout models
• Zero fee for PPLNS (transaction fees not included)
• Backed by Bitmain’s longstanding mining expertise
• Global server infrastructure for reduced latency

Cons explained:

• FPPS has a higher fee (4%) compared to some alternatives
• Large share of hashrate may increase centralization concerns
• Some users find the interface less streamlined than other pools

ViaBTC

ViaBTC is one of the best crypto mining pools, with a reputation for robust infrastructure, extensive coin support, and a vast suite of resources and tools for miners.

Headquartered in China, it has become the third-largest Bitcoin mining pool globally, holding about 14% of the network’s hashrate as of early 2025. In addition to BTC, ViaBTC covers numerous other PoW cryptocurrencies.

Key Features

• Wide range of assets: ViaBTC supports over 20 crypto assets, including BTC, BCH, LTC/DOGE (merged mining), ZEC, and DASH.
• Global server: Distributed servers minimize latency and ensure stable connections for participants across different regions.
• Auto-conversion: Miners are not required to manually trade their BTC earnings as the pool can automatically convert their profits.
• Security measures: ViaBTC implements two-factor authentication (2FA), multi-level risk controls, and wallet locks for enhanced account protection.
• Advanced tools and cloud mining: The pool offers real-time performance tracking, mobile apps for on-the-go monitoring, and a cloud mining feature for those who prefer mining without owning physical equipment.

Fees and Payment Methods

ViaBTC offers PPS and PPLNS for miners, charging 4% and 2%, respectively.

Hashrate and Supported Equipment

ViaBTC contributes around 83.5 EH/s, accounting for approximately 14% of Bitcoin’s total hashrate.

Moreover, ViaBTC supports ASIC miners for Bitcoin and other SHA-256 coins and GPU rigs for altcoins such as Ethereum Classic (ETC) or Zcash (ZEC). It also offers various setup guides for mining software like PhoenixMiner or T-Rex Miner.

The default minimum threshold for payouts is 0.0001 BTC, making the pool accessible to smaller-scale participants. Miners are paid once they exceed this amount, with disbursements typically processed daily.

Pros and Cons

Pros explained:

• Supports multiple cryptocurrencies for diversification
• Different payout methods
• Low payout threshold to suit smaller miners
• Strong security features
• Auto conversion and other tools to simplify user experience

Cons explained:

• PPS fees are higher than most competitors
• Cloud mining is still considered risky as it’s often associated with market volatility

Luxor Mining Pool

Luxor Mining Pool, established in 2018, is a North American-based operation recognized for its Full Pay Per Share (FPPS) model and broad support for multiple cryptocurrencies.Image via: Luxor

Though its Bitcoin hashrate is lower than some market-leading pools, Luxor remains a strong choice for miners seeking hourly payouts, competitive fees, and extra services like Catalyst, which allows mining altcoins but receiving rewards in Bitcoin.

Key Features

• Catalyst service: Multi-coin miners can direct their hash power to coins like Zcash or Dash but opt for Bitcoin payouts, simplifying portfolio management across various networks.
• Global servers: These are spread across Asia, Europe, and the Americas to reduce latency and bolster uptime for miners worldwide.
• Advanced analytics and developer tools: Luxor’s dashboard offers detailed performance tracking, an API for custom integrations, and user-friendly resources for real-time monitoring.
• Security: The pool is certified SOC 2 Type 2, bolsters accounts with 2FA, and maintains cloud redundancy to safeguard miner data.
• Tax reporting integration: Miners can partner with Luxor’s recommended platforms to automate tax filings for cryptocurrency revenues, streamlining compliance.

Fees and Payment Methods

The pool charges a fee of 0.7% for Bitcoin, only under the FPPS system, with consistent hourly payouts based on submitted shares, including block rewards and transaction fees. For altcoins, the fee structure may vary, as some altcoins use PPS or PPLNS models (occasionally at 0% for PPLNS).

Luxor’s 0.7% fee under FPPS compares favorably against other major pools, especially those with higher percentages for full pay-per-share payouts.

Hashrate and Supported Equipment

Luxor contributes an estimated 20 EH/s to the Bitcoin network, which puts it behind some larger competitors yet keeps it influential in North America.

The pool works with leading ASIC miners:

• Bitmain Antminer (e.g., S19 Pro, S19 XP)
• WhatsMiner (e.g., M50 series)
• AvalonMiner devices

GPU mining is also supported under the Catalyst feature for certain altcoins. The minimum Bitcoin payout is 0.004 BTC.

Pros and Cons

Pros explained:

• Competitive 0.7% FPPS fee
• Hourly payouts for stable earnings
• Catalyst service converts altcoin gains into Bitcoin
• Strong security (SOC 2 Type 2, 2FA)
• Developer-friendly API for advanced analytics

Cons explained:

• Roughly 20 EH/s—smaller than major pools like Foundry USA or AntPool
• Higher payout threshold (0.004 BTC) can be less convenient for small-scale miners
• No merged mining support (cannot mine multiple coins simultaneously under a single algorithm)

F2Pool

F2Pool is among the market’s longest-running and most diverse cryptocurrency mining pools. Established in 2013, it supports over 40 digital assets, including Bitcoin, Ethereum PoW (ETHW), Litecoin (LTC), and many more.Image via: F2Pool

Alongside its broad coin coverage, F2Pool offers a range of payout structures (PPS+, FPPS, and PPLNS), daily automatic distributions, and strong security features to safeguard miners’ earnings.

Key Features

• Multi-currency support: F2Pool accommodates more than 40 cryptocurrencies. It also supports different hardware for these altcoins.
• Advanced tools: F2Pool delivers in-depth statistics like real-time hashrate monitoring, revenue history, and profitability projections. It also supports cross-platform accessibility through web and mobile apps, making it straightforward for miners to track and manage their operations on the go.
• Security measures: Strong DDoS defenses and secure payout systems help minimize disruptions. The company’s reputation, built over nearly a decade, is a testament to its dependable infrastructure and prompt responses to potential threats.

Fees and Payment Methods

2FPool offers three types of payment methods, depending on the user’s need: PPS+, FPPS, and PPLNS.

F2Pool’s Bitcoin mining fees vary based on the payout model, generally ranging from 2% for PPLNS to 4% for FPPS. Although this may be slightly higher than smaller pools, many miners find the stability and reliability worthwhile. Again, it all depends on the user’s goals and needs.

Bitcoin miners can expect a minimum payout of 0.005 BTC by default, which they can adjust in their account settings to suit their preferences.

Hashrate and Supported Equipment

F2Pool provides about 10% of the total Bitcoin network hashrate in 2025, translating into roughly 81.4 EH/s. This means the pool often finds blocks relatively quickly. Moreover, most modern ASIC devices, like the Antminer S19 series, are compatible, and F2Pool also accommodates GPU mining for certain altcoins.

Pros and Cons

Pros explained:

• A solid track record since 2013
• A wide range of mineable cryptocurrencies
• Comprehensive mining statistics and real-time monitoring
• Robust security and DDoS protections

Cons explained:

• Higher fees than some competing pools
• Has engaged in questionable practices that contradict Bitcoin’s decentralized nature, fueling concerns about Bitcoin mining centralization

Speed isn’t just a challenge for blockchain – it’s the deciding factor between adoption and obsolescence. If Web3 can’t match the seamless experience users expect, it won’t matter how decentralized or innovative it is.

The current state of development speaks volumes: according to a16z’s Builder Energy Dashboard, which tracks where crypto’s builders are focusing their efforts, infrastructure development accounts for around one-fifth of activity, with Layer 1 and Layer 2 projects making up over a third of that segment. Given that most of these projects are focused on delivering high transaction speeds without corresponding high fees, it’s clear that scalability and processing times remain a major constraint on the industry.

However, blockchain scalability must not become the only lens through which we evaluate transaction speeds. Achieving the highest transactions per second isn’t an end in itself – it’s a means to a better user experience. In the areas where Web3 is gaining the most traction – namely trading and gaming – fast settlement isn’t a luxury; it’s a requirement for competing with Web2 incumbents.

Trading Up to DeFi

Demand for on-chain trading is surging. According to a16z’s annual State of Crypto report, decentralized exchanges (DEXs) now handle 10% of total spot crypto trading – a dramatic shift from just four years ago when centralized exchanges (CEXs) dominated 100% of the market.

Meanwhile, total value locked (TVL) in DeFi has climbed back above $100 billion for the first time since 2021, and analysts project continued expansion, with DeFi expected to grow at a 45% CAGR through 2032. The market is increasingly recognizing the advantages of on-chain, transparent, peer-to-peer trading over the black-box opacity of centralized systems.

But Web3 isn’t competing in a vacuum – legacy finance isn’t standing still. If on-chain trading platforms want to pull users away from TradFi, they need to offer speed, seamless UX, and reliability on par with platforms like Robinhood or Fidelity. The reality is that blockchain will never match TradFi’s centralized servers in raw speed – physics, latency, and decentralization make that impossible. But that’s not where Web3 wins. Its edge isn’t measured in milliseconds; it’s measured in trustlessness, finality, and programmable finance—things legacy systems simply can’t offer.

The real battle isn’t just about execution speed; it’s about how much trust, efficiency, and flexibility Web3 can inject into the financial stack. On-chain trading isn’t about making TradFi obsolete—it’s about building a financial system where finality is instant, markets are open, and speed serves trust, not intermediaries.

Game Studios Building It for Themselves

While gaming has seen flashes of mainstream interest, from Axie Infinity’s early surge to NBA Top Shot’s collectibles boom, long-term adoption remains elusive. This year, Ton has emerged as a hub for blockchain-based gaming, with viral hits like Hamster Kombat, Notion, and Catizen. These trends suggest that blockchain can add new layers of ownership and economic incentives to gaming – but viral success doesn’t equal sustainability.

The real opportunity lies in instant asset settlement, true player ownership, and permissionless economies, but only if blockchain tech can operate at speeds indistinguishable from traditional game servers. If transaction delays or high fees create friction, Web3 gaming risks being a novelty rather than a revolution – a niche experiment instead of a fundamental shift in the industry.

Unlike DeFi and on-chain trading, which have seen institutional backing, blockchain gaming is still in its experimental phase. Developers face a different set of challenges: while traders may tolerate some transaction costs, gamers won’t. If fees and latency interrupt gameplay, blockchain titles simply can’t compete with the seamless experience of traditional games. That’s why some studios, frustrated with existing infrastructure, have built their own chains – like Sky Mavis with Ronin or Dapper Labs with Flow.

This signals an unmet need: Web3 gaming requires infrastructure tailored for high-speed, low-cost transactions at scale. Instead of forcing developers to solve these problems themselves, the industry must deliver blockchains that are as invisible as they are powerful. After all, game creators should be focused on building immersive experiences, not architecting new networks from scratch.

The Need for High-Speed Blockchains

If blockchain is ever to deliver on high-demand use cases such as on-chain trading and gaming, the industry needs truly scalable, high-speed networks capable of matching Web2’s seamless experience. Solana’s rapid rise illustrates the demand for fast, cheap block space, but its struggles with uptime highlight the challenge of delivering scalable speed without compromise. Even Ethereum’s Layer 2 solutions, while improving speed and cost efficiency, introduce their own set of challenges – chief among them interoperability and fragmentation.

The direction of travel is right, but the clock is ticking. Blockchain infrastructure must evolve fast enough to deliver on Web3’s promises before Web2 incumbents absorb its best ideas. Speed is critical, but speed alone isn’t enough. The real goal isn’t just to match Web2’s performance – it’s to build a trustless, open, and composable foundation that Web2 can’t replicate.