Staking has emerged as a transformative decentralized finance service, unlocking the power of compound interest. Within a decade, staking may become a mainstream savings vehicle, especially for digital assets with fixed supplies like ADA and ETH. This article explores staking participation across Cardano and Ethereum ecosystems, focusing on decentralization metrics and user behavior.
The Staking Landscape: ADA vs. ETH
Key Differences in Staking Mechanisms
- Cardano (ADA): Introduced staking in mid-2020 with liquid staking capabilities. Users can delegate any amount of ADA from their wallets without minimum thresholds or third-party intermediaries.
- Ethereum (ETH): Transitioned to PoS in September 2022. Requires 32 ETH to run a validator, pushing smaller holders toward centralized exchanges (CEXs) or liquid staking providers like Lido.
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ADA Staking Participation
Current Statistics
- 23B ADA staked (80% circulating supply)
- 1.3M unique staking addresses (chain data)
- 70%-90% non-custodial staking (estimated)
Centralized Exchange Influence
| Exchange | ADA Stake | Market Share |
|---|---|---|
| Binance | 950M ADA | 4.1% |
| Coinbase | ~1B ADA | ~5% |
| eToro | ~500M ADA | ~2.3% |
Decentralization Advantage: Only 10-30% of staked ADA flows through CEXs versus Ethereum's higher reliance.
ETH Staking Participation
Current Statistics
- 23M ETH staked (19% circulating supply)
- 720K active validators
- 35% controlled by top 2 liquid staking providers
Centralization Risks
- Lido: 32% market share (730K ETH)
- CEXs: Coinbase, Binance, Kraken hold 18.5%
- MAV Concern: Lido approaching 33.3% threshold for potential chain halting
Decentralization Comparison
Key Metrics
| Factor | Cardano (ADA) | Ethereum (ETH) |
|---|---|---|
| Non-custodial staking | 70%-90% | <30% |
| Unique participants | ~1M | ~20K validators |
| MAV Score | 36 | 1 (projected) |
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FAQ: Staking ADA and ETH
Q1: Which network offers better staking accessibility?
A: Cardano's wallet delegation system provides broader access compared to Ethereum's 32 ETH validator requirement.
Q2: Are staking rewards higher on ADA or ETH?
A: Rewards vary based on network conditions, but ADA's liquid staking typically offers more consistent APY.
Q3: How does decentralization impact staking security?
A: Higher decentralization (like Cardano's) reduces single-point failure risks compared to Ethereum's Lido-dominated landscape.
Q4: Can small ETH holders participate in staking?
A: Yes, but they must use third-party services, introducing additional smart contract risks.
Q5: Which network has more organic stakers?
A: Cardano shows stronger evidence of direct user participation, while Ethereum relies more on institutional validators.
Conclusion: The Decentralization Gap
While Ethereum attracts 2-3x more total stakers than Cardano, ADA demonstrates superior decentralization:
- 5-50x more non-custodial participants
- Healthier validator distribution
- Higher resistance to MAV attacks
The staking revolution continues evolving, with Cardano's user-centric model contrasting Ethereum's institutional-heavy approach. As both networks mature, their staking ecosystems will significantly influence broader DeFi adoption.