Owing to the network’s Alonzo hard fork earlier this year, Cardano’s DeFi ecosystem is slowly taking form. The hard fork made it possible to include smart contracts. In addition, SundaeSwap, the company’s first decentralized exchange, is due to deploy its testnet later today. These developments have raised interest in Cardano, and its native coins, ADA, are benefiting from it.
The network struck an incredible milestone earlier today when the number of wallets staking ADA surpassed one million. This achievement represents an almost 1000 percent increase in less than a month.
The Proof-of-Work consensus method enables ADA holders to delegate their tokens to engage in the network and receive rewards based on the amount delegated. For example, on staked ADA delegations, the blockchain pays a 4.6 percent return.
Furthermore, about 71% of the ADA in circulation has been staked, with a market value of roughly $33 billion at the time of publication.
Cardano’s foray into the DeFi area has unquestionably aided this expansion. Nevertheless, product development, like the recent introduction of Cardano’s Yoroi wallet, might also be contributed to its rise. Yoroi, according to its creator EMURGO, is a light wallet that is aimed to make ADA staking simpler by giving a user interface that is substantially easier than the previously popular Daedalus full node wallet.
Other Cardano staking initiatives, on the other hand, have seen tremendous growth in recent months. For example, the Cardano-powered media launchpad has been in operation since November 1, 2021, when its maiden stake pool offering was launched. Flickto’s platform already has 1.5 million ADA put in it.
For ADA holders, staking has also been a source of money. They’ve been expecting the digital currency to see a price increase. Instead, the coin has dropped more than 30% of its value in the last month and more than 50% since the Alonzo hard fork in September, when it hit a record peak. Since then, ADA has not been able to break over the $2.28 barrier, far from indicating a recovery.