What Is the Difference between Nominal Yield and Real Yield in a High-Inflation Crypto Environment?

Nominal yield is the simple percentage return earned from staking or lending rewards before accounting for inflation. Real yield is the nominal yield adjusted for the rate of inflation, which measures the true increase in purchasing power.

In a high-inflation crypto environment, the nominal yield can be high, but if the inflation rate is even higher, the real yield will be negative, meaning the investor is losing purchasing power.