I will never understand crypto staking interest in the long term.

In real life you put your money in the bank or at 'stake’. They take your money and lend it out to farmers who then buy seeds, grow apples and sell them at a profit to pay back the loan at interest, which is why your staked money in real life generates interest.

In the crypto space why do all these shitcoins generate more shitcoins? Where is the value actually coming from?

From my understanding:

• Fees for validating transactions (ie: Eth staking).
• Funds used for degenerate margin trading by people day trading crypto with leverage.

Both of those things don’t seem long term. What’s the point of making 8% per year when the value of the crypto itself went up by 400% or in the case of some shitcoins went to 0?