Cardano’s Competitive Edge
The stakes have been increased for Cardano and Polkadot, with both networks pushing to dominate the staked capitalization rankings. Reported data from StakingRewards show Cardano is currently the largest blockchain in terms of staked value, with nearly $26.4 billion worth of ADA assigned to securing the network. With Cardano’s entire capitalization netting $36.6 billion, 73% of circulating ADA are locked up in staking contracts.
StakingRewards approximates Cardano stakers are receiving an annual reward of 7.22%.
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The 2nd Largest Crypto Asset
The second-largest cryptocurrency asset by staked value is Polkadot, totaling $22.7 billion worth of DOT locked — accounting for 64% of its circulating supply. The average annual staking rewards for DOT are estimated at over 13%.
Cardano and Polkadot at the moment represent 7.9% of the $620.6 billion in cryptocurrency assets currently allocated for staking across the crypto wealth sector combined. While Polkadot and Cardano have historically dominated the staking sector with locked value, other growing assets have experienced notable disruptions to their rankings recently.
Other Crypto Assets that have fallen in Capitalization
Solana has now beaten Eth2 to take third place for staked capitalization, with $9.4 billion in capital staked. SOL staking and validation forces assets to be time-locked up and removed from circulation which may account for the discrepancy, explaining why its staked capitalization is beyond its roughly $8 billion market cap. SOL stakers are earning 11% annually.
The once superpower of staking, Tezos, has decreased way down to the eleventh place with a staked capitalization of $3.5 billion earning 5.5% per annum. In mid-December 2020, Tezos was in fourth place according to a Cointelegraph article at the time.
In terms of overall capitalization, XTZ has fallen from the top ten to rank 35th according to Coingecko.
Eth2 currently sits as the fourth-biggest staked asset with $8.2 billion. According to the ETH 2.0 launchpad, there are 3.9 million ETH locked up in the Beacon Chain deposit contract. On the other hand, just 3.4% of circulating Ether has been assigned to staking, increasing the possibility that there is still significant room for Eth2’s staking cap to grow.
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