Charles Hoskinson, the creator of Cardano and a blockchain developer, has recently provided a new perspective on staking related to his flagship project.
In comparing Cardano and Ethereum, the two largest proof-of-stake blockchains by market capitalization, Charles Hoskinson highlights a distinct feature of Cardano’s staking process. According to Hoskinson, Cardano stands out due to the significantly higher number of unique addresses involved in staking. Hoskinson’s chart illustrates that over 1.2 million unique staking participants hold wallets on Cardano, while Ethereum has only 88,400.
According to a blockchain developer, many individuals came together years ago with the goal of creating an exceptional staking protocol and were successful in achieving it.
Data from the Staking Rewards portal partially validates Hoskinson’s claims. The figures show that Cardano’s staking ratio is 68.11%, whereas Ethereum’s staking ratio is 15.6%. This indicates that the amount of outstanding ADA delegated to staking is almost 4.4 times higher than for ETH.
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Despite Cardano’s higher staking ratio and the larger amount of outstanding ADA delegated to staking, there is a significant price difference between Cardano and Ethereum tokens. As a result, Ethereum’s market staking capitalization is 3.5 times larger than Cardano’s, standing at $34.29 billion.
The Staking Rewards website reports that Ethereum offers a higher staking reward than Cardano, with a rate of 4.92% versus 3.24%. However, when factoring in the adjusted reward metric, which considers the annual reward rate adjusted for network supply inflation, the gap widens significantly to 5.13% for Ethereum versus 0.17% for Cardano.
