The deployment of the Cardano Alonzo hard fork upgrade in September 2021 prompted smart contracts, which enable the development of decentralized applications (dApps). Demand for its native asset, ADA, for staking purposes increased significantly, particularly in February 2022. Cardano’s lead over Ethereum in terms of total stakers has grown even more.
In February, Cardano (ADA) outnumbered key competitor Ethereum in terms of total stakers. Cardano had 1.17 million stakeholders at the end of the second month of 2022.
Although Cardano had a 2% increase in stakers, up from 1.14 million in January 2022, the network still has a bigger market share than Ethereum 2.0.
Cardano’s popularity will skyrocket in 2022.
Despite various concerns from blockchain enthusiasts and decentralized finance aficionados regarding the absence of concrete use cases, Cardano has seen tremendous growth in 2022. SundaeSwap and MiniSwap, two decentralized exchanges that have had a favorable impact on the total value locked in the Cardano ecosystem, are driving the ecosystem.
The total value locked (TVL) in Cardano on January 2 was $822,261. On January 20, TVL reached $3.2 million, a 292 percent increase. Cardano TVL soared by an astonishing 2,619.99% to $87.79 million two days later. After a minor correction near the end of the month, the total value was locked in on January 31 at $72.41 million.
Cardano TVL reached $100 million on February 13, $120 million on February 16, and finally settled at $113.9 million on February 28.
Cardano’s total value has remained steady so far in March, currently standing at more than $130 million.
Positive Cardano netflows in February
To comprehend the Netflow indicator, we must first comprehend inflows and outflows.
Inflows are the amount of ADA that is placed into exchange wallets, while outflows are the amount of ADA that is removed from exchange wallets.
Netflow is the differential between coins going into and out of exchanges.
Cardano (ADA) received $10.36 billion in inflows on February 28.
Cardano (ADA) had 9.7 billion in outflows on February 28.
This means that Cardano netflows totaled 666.05 million (inflows of 10.36 billion minus outflows of 9.7 billion).
Cardano stakeholders outnumber Ethereum 2.0 stakeholders.
The shift of the Ethereum network from the energy-intensive proof-of-work (POW) consensus mechanism first used by Vitalik Buterin after Satoshi Nakamoto’s Bitcoin to a more environmentally friendly proof-of-stake (POS) system is known as Ethereum 2.0.
Ethereum 2.0 is still in its early phases and has yet to reach complete functionality. The network has been impacted by negative crypto market sentiment in all sectors. Aside from the price, the total value locked in and the number of stakers have all plummeted. On the first day of 2022, the total number of stakers on Ethereum was 54,772, which reduced to 54,768 on January 18 and remained constant throughout February.
In comparison to Cardano, Ethereum experienced relatively low inflows and outflows, resulting in moderate netflows.
On February 28, there were 546,120 ETH inflows.
Staking is a novel method of earning passive income in which you hold specific cryptocurrencies such as ADA and ETH 2.0 to collect incentives.
Based on the data presented above, it is evident that Cardano outnumbers Ethereum by more than 20 times its total number of stakers in February.
This is due to a large difference in netflows (666.05 million versus 131,500), which confirms the increased movement of ADA by millions of holders.
Aside from that, ADA holders have access to a variety of staking platforms.
Kraken, Binance, Coinbase, Yoroi, and the Daedalus wallet are just a few of these services.
Coinbase and Binance are not only among the largest cryptocurrency exchanges in terms of daily volume, but they also have millions of users.
Coinbase and Binance have a combined user base of well over 100 million.
With Cardano and Ethereum seeing increased development activity in 2022, the number of stakers and total value locked on each platform are expected to rise during the year.