Cardano Ranks Second in Staking Market Cap
Investment and trading always come with risk, so it’s crucial to conduct thorough research before making any decisions. In terms of staking rewards, Cardano stands as the second-largest proof-of-stake (POS) network, following Ethereum. With a staking market cap of $9.22 billion, Cardano’s staking ratio is higher at 71.86% compared to Ethereum’s 14.31%.
Cardano Staking Statistics
Data from Pools.pm shows that 34,308,238,349 ADA have been staked across 3,182 pools. Despite its impressive numbers, what sets Cardano apart from other POS blockchains is its unique staking mechanism. According to ADA Whale, Cardano staking is considered the biggest DeFi app in crypto, as it is liquid, non-custodial, and risk-free.
Cardano’s Unique Staking Mechanism
Unlike other POS networks that rely on slashing, the Cardano blockchain uses a staking mechanism based on game theory. This has several implications, such as staking in Cardano being liquid and not requiring users to lock their ADA for a specific period. Additionally, delegating ADA to a stake pool operator does not give them ownership of the tokens.
Cardano Founder’s Take on Ethereum Staking
In light of recent developments, Cardano founder Charles Hoskinson commented on the Ethereum staking mechanism after Coinbase CEO Brian Armstrong tweeted about the SEC’s plans to ban retail access to staking. Hoskinson stated that non-custodial liquid staking, like what Cardano uses, is similar to mining pools that have been around for over a decade. He added that all proof of stake protocols might be wrongly grouped together due to misunderstandings about their actual operation and design.