Cardano moves ahead of DOT with its staking metrics highlighting the fundamentals that can deliver on its roadmap as we can see more in our latest ADA news.
The data compiled by CryptoDiffer shows that Cardano moves ahead of DOT, leading the pack when it comes to staking. The Figures show that the users staked about $28.95 billion on the platform which manages to surpassed Polkadot which comes in at $25.43 billion. More than a third of all staking in the crypto sphere is accounted for between the pair.
ICOs came and went and Ethereum DeFi is expensive and the NFTs hype is seemingly dying down. But staking is the rebuttal to arguments that the crypto is a flash in the pan that has no viable long-term futures. Proof of Stake is an alternative consensus mechanism to Proof of Work so instead of relying on energy-dependent mining to write blocks, PoS uses a deterministic algorithm to select the nodes on the number of tokens held.
The probability of selection is proportional to the tokens held which means that more tokens locked up in staking means a higher chance for the node of writing the block and earn the reward. The users that stake their tokens are compensated with the staking rewards and this provides quite an easy way to earn passive income. It also strengthens the ecosystem by creating more demand and take the tokens out of the circulating supply.
Staking is much safer to earn compared to Defi liquidity provisions. The latter exposes the users to impermanent loss when the token prices changes compared to when deposited in the pool. While staking rewards amount to less than other means, it still makes up for an easier consistent, and low-risk way of earning using crypto. The Shelley phase brought staking to Cardano in 2020 and since then, the number of active pools tripled from the initial number of 700 pools to launch at more than 2300 at present. The total percentage of ADA staked is also increasing, from 69% in January to 73% today.
If you add this to the highest dollar amount staked on any platform, we can see that users are confident that Cardano can deliver. While this is great for the long-term future, Sunday’s flash crash saw Cardano suffer 26% losses to the bottom at $1.04. the slow recovery hit resistance at $1.32 leading to bears resuming the control.
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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