Data compiled by the analysis tool CryptoDiffer show that Cardano (ADA) leads the group when it comes to stakeout. The figures show that users bet $ 28.95 billion on their platform. This manages to “pop” Polkadot (DOT) , which reaches US $ 25.43 billion. More than a third of all bets in the crypto sphere are counted among the pair.
ICOs come and go, Ethereum DeFi is prohibitively expensive and the non-fungible token (NFT) hype seems to be dying. But staking is perhaps the main refutation to the arguments that cryptography is a flash in the pan, with no viable long-term future.
Staking is the “stable Eddy” of cryptocurrency
Proof of Participation (PoS) is an alternative consensus mechanism to Proof of Work (PoW). Rather than relying on energy-dependent mining to record blocks, PoS uses a deterministic algorithm to select nodes based on the number of tokens held.
Typically, the selection probability is proportional to the number of tokens held, which means that the more tokens locked on the stakeout , the greater the chances of the node to write the block and win the reward.
Users who bet their tokens are compensated with stakeout rewards. This provides an easy way to earn passive income. It also strengthens the ecosystem, creating demand and removing tokens from the circulating supply.
Staking is a safer way to earn compared to DeFi’s marketing and liquidity provision. The latter exposes users to impermanent losses when the price of the token changes compared to when it is deposited in the pool.
While the rewards of betting are generally less than other means, it is still an easy, consistent and relatively low risk way to win using cryptocurrency.
Cardano is at the top of the betting platforms, but the fundamentals no longer matter
The Shelley phase brought the bet to Cardano in July 2020. Since then, the number of active pools has tripled from its initial number of 700 pools at launch for more than 2,300 at the moment.
Likewise, the total percentage of ADA bet remains on the rise, rising from 69% in January to 73% today. Add to that the highest dollar amount wagered on any platform, and it suggests that users are confident that Cardano can deliver.
While this bodes well for its long-term future, Sunday’s flash crash saw Cardano suffer 26% losses to a low of $ 1.04. A weak recovery today hit resistance at $ 1.32, prompting bears to regain control.
In contrast, Dogecoin, which is programmed for its lack of fundamentals and infinite supply, has not only recovered its losses in four hours, but has since registered gains of 30%.