The largest proof-of-stake (PoS) network, Ethereum [ETH], has significantly fewer unique staking wallets than the Cardano [ADA] network, according to a tweet from Cardano founder Charles Hoskinson.
According to Hoskinson’s data, Cardano had nearly 1.23 million unique users staking, compared to just 88,400 on the Ethereum chain. This increased competition between the two largest networks by staking market cap.
According to Staking Rewards, with a value of more than $34 billion as of press time, Ethereum was the largest network by staking market cap. However, as the staking ratio was only 15.6%, significantly fewer ETH tokens were used for staking. The staking ratio in the case of Cardano was higher than 68%.
Additionally, the Cardano chain’s growth in validators was superior to that of Ethereum’s. In spite of all the excitement surrounding the upcoming Shanghai Hard Fork, Ethereum’s total validator count increased by just 4.2% in the previous month. On the other hand, during that time, Cardano stakers increased by 7.29%.
Ethereum, however, provided validators with a higher staking reward. In the case of Ethereum, the annualized reward rate after accounting for network supply inflation was over 5%, as opposed to 0.16% for Cardano.
The staking revenue also provided a comparison between the two networks. According to data from Token Terminal, the monthly losses for Cardano’s stakeholders were 30%. On the other hand, Ethereum’s validators made monthly returns on their investments of almost 9%.
Charles Hoskinson, who was also a co-founder of the Ethereum chain, hasn’t held back when it comes to criticizing the PoS network’s staking system. He criticized Ethereum’s liquid staking architecture earlier in February by labeling its staking “problematic.” He claimed that surrendering custody of one’s assets and locking up money amounted to centralization and regulation.
Before that, he made fun of Ethereum’s restriction on stakers’ ability to withdraw ETH. It should be emphasized that users of Cardano can withdraw their ADA at any moment from staking pools, but ETH stakers must wait until Shanghai Upgrade.
