Staking is a decentralized financial service that is still relatively new. People are discovering the magic of compound interest and we dare say that within 10 years staking will be a form of savings. The coins of most blockchain networks are digitally scarce and there is no way to increase their supply. As demand grows, their market value increases.
There are only 2 decentralized PoS blockchains in the top 10 that enable staking. Cardano brought this capability in mid-2020. Ethereum switched from PoW to PoS in September 2022. Staking is the most secure way to profit from held coins as it is implemented directly in the projects’ protocols. This is especially true for Cardano which has liquid staking. In the case of Ethereum, third parties can be used through smart contracts so stakers must rely on the quality of code from these staking providers. In this article, we will discuss how many people are staking ADA and ETH. We will not get to exact numbers as the data is obscured by centralized exchanges. Still, it is possible to get at least partial results. We will briefly look at the results in the context of decentralization.
There may be roughly 2x the number of ETH stakers than ADA stakers. It can be tens of millions of stakers. It is likely that in a non-custodial way, more people are staking ADA than ETH. In terms of decentralization, Cardano is 5-50x better off than Ethereum.
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