Cardano Ranks Biggest Staking Network After Ethereum, Here Are Details
According to staking rewards, Cardano ranks as the second-largest proof-of-stake (POS) network after Ethereum, with a staking market cap of $9.22 billion. Ethereum, on the other hand, has a staking market cap of $26.95 billion.
Cardano has a higher staking ratio of 71.86%, while Ethereum has one of 14.31%.
According to Pools.pm, 34,308,238,349 ADA have been staked across 3,182 pools.
While this might seem enormous, Cardano uses a unique staking mechanism that sets it apart from other POS blockchains.
Cardano staking is crypto’s biggest DeFi app. Liquid, non-custodial, risk free. In light of today’s news, we should make a push for mass adoption. We don’t need middlemen taking a cut. Get some ADA, download a wallet, pick a pool, click DELEGATE and be part of the revolution
— ADA whale (@cardano_whale) February 10, 2023
According to ADA Whale, “Cardano staking is crypto’s biggest DeFi app. Liquid, non-custodial, risk-free.”
Cardano’s staking mechanism
The Cardano blockchain uses a staking mechanism based on game theory rather than slashing. The implications of Cardano’s design choice are: First, staking in Cardano is liquid and does not lock a user’s ADA for any vesting term.
Second, Cardano’s ADA delegation does not give the stake pool operator ownership of them. The custody of the ADA cryptocurrency delegated to a Cardano stake pool is always under the control of the owner’s private key.
As reported earlier, Cardano founder, Charles Hoskinson commented on the Ethereum staking mechanism following Coinbase CEO Brian Armstrong’s tweet that the SEC was planning to ban retail access to staking.
“Ethereum staking is problematic. Temporarily giving up your assets to someone else to have them get a return looks a lot like regulated products. Slashing and bonds not so good. Non-custodial liquid staking on the other hand is like the mining pools we’ve used for 13 years,” he stated.
Hoskinson added: “All proof of stake protocols might get lumped together due to a fundamental misunderstanding about the actual facts of operation and design [of staking].”
