Top 11 Altcoins With Passive Income in 2024: A Deep Dive

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The term “altcoins” has changed quite a bit since the early days of cryptocurrency. Back then, with only a few crypto assets around, anything other than Bitcoin (BTC) was simply called altcoins.

Today, the crypto space is much larger and more diverse. There are numerous altcoins and tokens, each serving different purposes beyond just being a medium of exchange, which means they aren’t necessarily in direct competition with Bitcoin.

However, for simplicity, we still refer to any crypto asset other than Bitcoin as altcoins.

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Here’s a look at the top 11 altcoins that offer the best passive income strategies by market capitalization, excluding stablecoins. Stablecoins are left out since they are designed to keep a stable price and aren’t usually seen as speculative investments.

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11. Pendle Finance (PENDLE)

The first altcoin we’d like to shed light on is PENDLE. Pendle Finance lets users tokenize and trade future yields using top-yield protocols like Aave, Compound, and EtherFi. Similar to stripped bonds in traditional finance, Pendle splits yield-bearing assets into tokenized ownership (zero coupon bonds) and yield components (coupons), making it one of the most innovative DeFi protocols in 2024.

Since its mainnet launch in June 2021, Pendle’s Total Value Locked (TVL) has reached $19 million, with its market value ranging between $20 million to $50 million. Today, Pendle is the 6th largest DeFi protocol, boasting $6 billion in TVL.

PENDLE is the governance token of Pendle Finance. Staking PENDLE grants users vePENDLE tokens. vePENDLE holders earn 3% of transaction fees, participate in governance, vote to incentivize liquidity in pools, and share 80% of the pool’s fees. LPs with vePENDLE enjoy boosted yields from liquidity pools. 

For more in-depth insights on vePENDLE’s use cases, check out analyses by 2Lambroz.

10. Bittensor (TAO)

Bittensor is an open-source protocol driving a decentralized, blockchain-based machine-learning network. In this network, machine learning models train collaboratively and earn TAO tokens based on the value they provide to the collective. TAO tokens also allow external access, letting users extract information from the network and customize its activities to their needs.

Their ultimate goal is to create a pure market for artificial intelligence—a place where consumers and producers of AI can interact in a trustless, open, and transparent environment.

TAO is Bittensor’s governance token, designed similarly to Bitcoin, with a maximum supply of 21,000,000. This supply is gradually distributed as block rewards to miners and validators. TAO undergoes a halving cycle every four years, cutting block rewards in half, with the first halving set for 2025.

Here are some ways you can generate passive income with TAO tokens:

  • Providing Liquidity on Uniswap: Earn up to 70% APY by providing liquidity in the WTAO-WETH pool.
  • Trading Yields on Pendle: Trade yields or buy PT tokens for fixed yields of 6% at maturity.
  • Liquid-Staking on Hatom Protocol: Stake your TAO on the MultiversX blockchain and earn 23% APY by providing in Hatom Lending.

9. Jupiter Exchange (JUP)

Jupiter is one of the top crypto projects on Solana, especially notable for its transaction volume in November 2023 alone. To give you an idea of its scale: Uniswap and 1inch recorded significantly lower volumes in the same period.

As a top-tier swap aggregation engine, Jupiter plays a crucial role in providing liquidity infrastructure for the Solana ecosystem. It is also expanding its DeFi offerings with features like Limit Orders, DCA/TWAP, Bridge Comparator, and Perpetuals Trading.

The governance token, JUP, empowers community members to decide on liquidity and emission plans and vote on all aspects of the Jupiter platform. Starting June 2024, Jupiter Exchange plans to burn 30% (3 billion JUP worth $2.3B) of the total $JUP supply. This supply reduction, taken from team allocation, could significantly boost JUP’s future growth.

Here are some DeFi opportunities to earn yields from JUP:

  • Providing liquidity on Orca (Solana-based DEX) JUP-USDT pool: Earn 211% APR.
  • Lending on Kamino Protocol JUP-SOL pool: Earn 30% APY.

If you’re thinking about investing in JUP for the mid-term, check out DeFi Mochi’s thread for a high-conviction analysis.

8. Near Protocol (NEAR)

NEAR Protocol is a layer-one blockchain designed as a community-run cloud computing platform, addressing key issues like slow transaction speeds, low throughput, and poor interoperability that hinder many other blockchains. This makes it an ideal environment for DApps, offering a developer and user-friendly platform. For example, NEAR uses human-readable account names instead of the cryptographic wallet addresses common to Ethereum.

Recently, NEAR has been aligning with the AI-themed token trend. On June 19, crypto hedge fund Panthera Capital announced it was raising an impressive $1 billion, with 15% to 20% of this new capital earmarked for AI-related blockchains. NEAR Protocol leverages both AI and blockchain technology to scale decentralized applications, which has positively impacted the native token of this layer-1 project.

Like other L1 tokens, NEAR can be staked for yield farming on DeFi protocols such as DEXs and yield optimizers. Some of the most liquid and trusted platforms include Uniswap and native DEXs on NEAR like Aurigami and Trisolaris.

For more details on NEAR’s technical fundamentals, check out this post by Stacy Muur.

7. Sui Network (SUI)

Sui is a cutting-edge layer-1 blockchain platform designed for global adoption, offering a secure, powerful, and scalable environment for development. It uses an innovative object-centric data model and the secure Move programming language to tackle inefficiencies found in existing blockchain architectures.

Sui focuses on enhancing user experience by removing common barriers in blockchain interactions. With features like zkLogin, sponsored transactions, and programmable transaction blocks, Sui ensures applications are user-friendly and accessible, setting a new standard for Web3 user experience.

The SUI token currently serves four main purposes on the Sui network:

  • Proof-of-Stake Participation: Delegated proof-of-stake rewards honest behavior.
  • Gas Fee Payments: Used for transaction and data storage fees.
  • Utility Across Applications: Versatile asset for DeFi, games, and more.
  • Governance: Future role in on-chain voting and platform changes.

Here are the top choices for generating yields from SUI tokens:

  • Providing Liquidity on Sui-based DEXs: Earn up to triple-digit APRs by providing liquidity on platforms like Cetus and Turbos.
  • Liquid-Stake SUI: Stake your SUI tokens on Aftermath, Volo, or Haedal Protocol for additional rewards.
  • Lending: Use top lending protocols on Sui, like Scallop and SuiLend, to lend your SUI tokens.

Keep an eye out for potential airdrop opportunities as you explore the Sui Network.

6. Chainlink (LINK)

Founded in 2017, Chainlink is a blockchain abstraction layer that makes universally connected smart contracts possible. By using a decentralized oracle network, Chainlink lets blockchains securely interact with external data feeds, events, and payment methods. This provides the off-chain information that complex smart contracts need to become the go-to digital agreement.

Chainlink relies on a network of node operators to power a variety of decentralized Price Feed oracle networks. These networks are in production and currently secure billions in value for top DeFi apps like Synthetix, Aave, and Compound.

As the world of Real-World Assets and Tokenization rapidly evolves, Chainlink is crucial as a trusted price oracle provider, helping banks, financial institutions, and protocols enter the crypto space.

In December 2021, Chainlink introduced LINK token staking to boost “sustainable growth and security.” LINK staking aims to add a new layer of “crypto-economic” security to the oracle network.

To generate passive income from LINK, consider staking in Chainlink v2.0, which offers over 4% APY from the community pool. For more details, Chainlinkgod explains how Chainlink services are monetized and how this will add value to the LINK token

5. Render (RNDR)

Render is at the forefront of crypto-AI projects, specializing in distributed GPU rendering networks built on the Ethereum blockchain. The goal is to connect artists and studios needing GPU computing power with mining partners willing to rent out their GPU capabilities.

Render Token (RNDR) is the native token of the Render Network. Released in October 2017, RNDR has been integral to the network’s growth and development. Artists use RNDR to pay for GPU compute power from GPU providers, also known as node operators.

Since early 2024, the RNDR token price has been climbing, driven by the booming interest in AI and Nvidia’s record-breaking quarterly revenue of over $22 billion. Additionally, Mac Pro users get the first year of OctaneRender VFX software for free, potentially boosting RNDR’s popularity among creators.

The increasing demand for GPUs to train AI models adds another revenue stream for Render Network’s services. Its pay-as-you-go model is attractive to smaller enterprises and individual creators, as they only pay for the GPU power they use.

Beside using RNDR for borrowing and buying GPU on the Render Marketplace. For more insights, Aylo has shared his thoughts on the potential of RNDR.

4. Toncoin (TON)

Launched in 2018 by Telegram, the world’s top messaging platform with over 800 million users, TON originally stood for “Telegram Open Network.” Today, it’s simply known as “The Open Network.”

In 2023, TON set a goal to onboard 30% of its users by 2028, aiming for 500 million users. The target for 2024 was around 3-4 million users, but the number of activated wallets on TON has already surpassed 9 million.

The secret to TON’s rapid growth is Telegram’s Mini Apps. These Mini Apps allow developers to create flexible interfaces that launch directly within Telegram, potentially replacing websites or web applications. Key use cases of Mini Apps include Telegram-based Web3 games, trading bots, DEXs, NFT marketplaces, and SocialFi applications.

TON’s ecosystem is now offering significant incentives through their Open League campaigns. To take advantage, simply find the best yield optimizers and stake your TON for more rewards.

We’ve curated a thread that showcases the TON landscape and guides you through five actions you should take on these altcoins to tap into airdrop potentials and yield opportunities.

3. Solana (SOL)

Solana was built to power decentralized finance (DeFi), apps, and smart contracts. It uses a cool mix of proof-of-stake and proof-of-history, making it super fast and secure. That’s why Solana is one of the quickest blockchains out there.

Thanks to its unique hybrid consensus model, Solana attracts both small-time traders and big institutional investors. The Solana Foundation is heavily focused on making DeFi more accessible to everyone.

So, don’t just stash SOL in your wallet. Put the altcoins to work on some trusted DeFi protocols. Here are a few ways to do it:

  • Provide liquidity on Orca or Raydium: These are among the top DEXs on Solana.
  • Deposit SOL as collateral on Kamino Finance: You can borrow more assets, and the supply rate for SOL is around 8% APY. Plus, you’ll earn Kamino Points for its Airdrop Season.
  • Liquid-stake SOL on Sanctum: Earn over 8% APY and get INF, which you can use for liquidity provision or lending on other protocols. Here’s a quick look at Sanctum.

2. Binance Coin (BNB)

Standing still at the top 2 altcoins to invest in is Binance Coin (BNB). It is a utility token mainly used to pay trading fees and get discounts on the Binance exchange. But BNB isn’t just limited to Binance – you can also use it as utility and gas token on BNBCHAIN – one of the top highest trading volume blockchain.

Critics point out that BNB isn’t as decentralized as some other altcoins. Another concern is the reported Securities and Exchange Commission (SEC) investigation into whether Binance should have registered BNB as a security during its initial coin offering.

Despite these concerns, you can still earn free tokens by holding BNB. Here are some strategies to consider:

  • Binance Simple Earn: Binance offers flexible BNB staking for APY. BNB holders in Simple Earn are also eligible for Binance New Tokens Airdrop, which automatically drops new tokens into your Binance Spot Wallet whenever there are new listings.
  • Participating in Binance Launchpad and Binance Launchpool: Binance is known for its high-return Launchpad and Launchpool programs. By staking your BNB in the pool, you get a pro-rata allocation of new tokens invested by Binance Labs.
  • Liquid-staking BNB on Stader Labs and ListaDAO: Earn around 7% APY by liquid-staking your BNB on these platforms.
  • Providing BNB as liquidity on PancakeSwap pools: Earn trading fees by providing BNB as liquidity, but be mindful of impermanent loss to avoid potential losses.

Explore the BNBCHAIN ecosystem and discover the various ways you can earn passive income with BNB tokens.

1. Ethereum (ETH)

Last on our list is Ethereum (ETH), the second-largest cryptocurrency by market cap. Out of the nearly $2.5 trillion total market capitalization, more than $389 billion is held in Ethereum, making it the biggest altcoin on the market.

Unlike Bitcoin, which is known as a “decentralized currency,” Ethereum is a distributed computing network. Users can run dApps and host smart contracts on its blockchain. This versatility has made Ethereum the foundation for many innovations in the crypto space, including DeFi and NFTs (Non-Fungible Tokens).

Critics often highlight Ethereum’s high transaction fees, especially during periods of network congestion. However, with thousands of apps and numerous other altcoins powered by its blockchain, Ethereum remains a dominant force in the crypto world. The major network upgrades, like Ethereum 2.0, aim to address these scalability and fee issues, making it an even more attractive investment.

There are multiple ways to earn passive income from ETH on both centralized exchanges, DeFi and NFTs

  • Liquid-Staking on Lido: Stake your ETH on Lido or other high-yield liquid staking protocols and earn around 4% APY from staking yields.
  • Restaking on EtherFi or Other Liquid Restaking Protocols: This method allows you to earn staking yields, restaking yields, and points that might be eligible for token airdrops.
  • Providing Liquidity in Pendle’s Pools: You can also generate passive income by providing liquidity in Pendle’s pools or buying Pendle’s PT for fixed yields.
  • Lending on Money Market: ETH is widely used on top lending protocols to leverage one’s portfolio and increase capital efficiency. You can lend ETH on Aave, Silo, or Fluid to borrow stablecoins or other assets.
  • NFT investment: Investing in some blue-chip NFT collections on Ethereum

For more detailed insights about Ethereum-related narratives and strategies on how to monetize your ETH, check out the thread below.

Final Thoughts

This article highlights the best 11 altcoins to watch for passive income opportunities in 2024. From staking and providing liquidity to using new restaking protocols, the crypto world offers various strategies to grow your investments. Each of the top 11 altcoins we’ve discussed has unique benefits and potential rewards.

By using these methods, you can make the most of your crypto holdings and enjoy a steady income. Whether you’re experienced or just starting in crypto, these altcoins provide great opportunities to boost your financial growth in the coming year.

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Disclaimer: This article serves informational purposes only and does not constitute financial advice. Conduct your own research before making investmendecisions.