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Cardano Ecosystem Captures Influx of Staking Coins That Far Outpaces ETH Staking
In September 2021, the Alonzo hard fork took place on the Cardano network. Along with the update, support for smart contracts and the ability to create and run decentralized applications (dApps) came to the network. Demand for ADA for staking purposes skyrocketed in February 2022. In terms of the total number of stakers, Cardano continued to increase its advantage over Ethereum.
As of the end of February, Cardano had 1.17 million stakers, according to the BeInCrypto analytics department.
The number of stakers is up 2% this month (compared to 1.14 million in January 2022).
Cardano’s popularity soared in 2022
Despite much criticism from blockchain enthusiasts and fans of decentralized finance, the Cardano project experienced a wave of impressive growth in 2022. The ecosystem is led by decentralized exchanges SundaeSwap and MiniSwap, which have had a positive impact on the total value of funds locked in staking in the Cardano ecosystem.
Read also: Staking Cardano (ADA): how to stake cryptocurrency
As of Jan. 2, Cardano had a total of $822,261 in assets locked up. TVL (Total Value of Locked Funds) rose by 292% to $3.2 million by Jan. 20. Two days later, the figure rose by 2,619.99% to $87.79 million. By the end of the month, the indicator corrected and by January 31 it was fixed at $72.41 million.
Meanwhile, as of February 28, TVL in the Cardano ecosystem was $113.9 million. In March, the figure continued to grow and exceeded $130 million.
Cardano recorded a net capital inflow in February
Capital inflow is the number of ADA tokens placed on crypto exchange wallets. Outflow is the amount of ADA withdrawn from wallets.
The difference between the inflow and outflow of coins is called the net inflow.
As of February 28, the inflow of Cardano (ADA) to crypto exchange wallets amounted to 103.36 coins.
Thus, the net inflow of Cardano amounted to 666.05 million coins.
Read also: Top 9 cryptocurrencies to stake in 2022
Staking on the Ethereum 2.0 network falls short of Cardano
The Ethereum 2.0 network is still in the early stages of its development, and its functionality has not yet been fully implemented. Negative sentiment in the cryptocurrency market has changed the dynamics on the network. Not only the value of ETH has decreased. The total amount of funds blocked and the number of stakers also decreased. At the beginning of the year, 54,772 coins were locked in the ETH network.
Compared to Cardano, the Ethereum network is seeing muted capital flows.
As of February 28, the capital inflow was 546,120. The outflow was 414,620 coins. Thus, the net inflow of ETH coins reached 131,500.
Staking has become a new way to generate passive income. Investors receive rewards by depositing coins.
Judging by the statistics above, in February, the influx of coins for staking into the Cardano ecosystem exceeded the inflow of coins into Ethereum by 20 times. This is confirmed by the difference in net capital inflows.
In addition, ADA holders have more staking platforms at their disposal.
Among them are platforms such as Kraken, Binance, Coinbase, Yoroi and the Daedalus wallet.
Coinbase and Binance are not only among the largest cryptocurrency exchanges in terms of daily volumes, but also have millions of users.
The combined combined user base of Coinbase and Binance is well over 100 million.
It is clear that in 2022 the volume of coins staked on these platforms will increase significantly.
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