- The number of unique staking wallets on Cardano was nearly 1.23 million.
- Ethereum offered a higher staking reward for validators as compared to Cardano.
In a tweet shared by Cardano founder Charles Hoskinson, the Cardano [ADA] network was shown to have significantly more unique staking wallets than the largest proof-of-stake network (PoS), Ethereum [ETH].
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The data provided by Hoskinson showed that the number of unique users staking on Cardano was nearly 1.23 million as compared to just 88,400 on the Ethereum chain, intensifying competition between the two largest networks by staking market cap.
Cardano is pretty special. It's almost like a lot of people thought about how to build an excellent staking protocol years ago and made it happen pic.twitter.com/SydlMTYyy1
— Charles Hoskinson (@IOHK_Charles) April 3, 2023
A comparison between the two networks
As per Staking Rewards, Ethereum was the largest network by staking market cap, having hit a value of more than $34 billion at press time. However, considerably less ETH tokens were used for staking purposes as the staking ratio was just 15.6%. In Cardano’s case, the staking ratio was more than 68%.
Furthermore, the growth in the number of validators on the Cardano chain was better than that of Ethereum. Despite the hype surrounding the upcoming Shanghai Hard Fork, the cumulative validator count on Ethereum grew only by 4.2% in the last month. On the other hand, the number of stakers on Cardano jumped 7.29% in the same time period.
Source: Staking Rewards
However, Ethereum offered a higher staking reward for validators. The annualized reward rate adjusted for network supply inflation was over 5% in Ethereum’s case as compared to 0.16% for Cardano.
Additionally, the staking revenue presented a contrast between the two networks. Cardano’s stakers recorded monthly losses of 30%, per data from Token Terminal. On the contrary, Ethereum’s validators walked home with monthly profits of more than 9% on their stakes.
Source: Token Terminal
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Hoskinson’s digs at Ethereum
Charles Hoskinson, who was a co-founder of the Ethereum chain as well, hasn’t spared any opportunities in taking potshots at the staking mechanism of the PoS network. Earlier in February, he called Ethereum staking ‘problematic’ casting aspersions on its liquid staking model. He said that the locking of funds and giving custody of one’s assets amounted to centralization and regulation.
Ethereum staking is problematic. Temporarily giving up your assets to someone else to have them get a return looks a lot like regulated products. Slashing and bonds not so good. Non-custodial liquid staking on the other hand is like the mining pools we've used for 13 years
— Charles Hoskinson (@IOHK_Charles) February 9, 2023
Before that, he mocked Ethereum’s inability to allow stakers to withdraw ETH. It is to be noted that Cardano allows users to withdraw their ADA from staking pools anytime, while ETH stakers have to wait until Shanghai Upgrade.
