Cardano Celebrates 1.3M Stakers, but Is It Good as It Seems?

• A Cardano data aggregator revealed interesting trends in Cardano’s staking ecosystem. 
• Stakers on the Cardano network have exceeded 1.3 million, providing a testament to its vibrant ecosystem. 
• However, Cardano’s accomplishment may not be as impressive as it seems. 

Cardano is having an exceptional year in terms of development and growth. Its DeFi ecosystem has grown by a staggering 200%, coupled with the launch of several highly anticipated new projects, such as Mithril and Hydra, and the rapid influx of new smart contracts on the network. 

Now adding to its extensive list of achievements this year, the network has surpassed over 1.3 million stakers, a testament to its growing community and widespread adoption of its staking mechanism. However, while this milestone is significant, there’s more to it than meets the eye. 

Cardano Staking Good As It Seems?

On-chain data aggregator Cexplorer.io recently shared insights into Cardano’s staking ecosystem, celebrating its milestone achievement of surpassing 1.3 million stakers and revealing interesting trends. 

According to the data aggregator, the Proof-of-Stake (PoS) chain has experienced an influx of over 50,0000 new stakers this year, averaging around 200 fresh stakers daily. While this accomplishment is commendable, it isn’t as impressive when considering Cardano’s historical trajectory. 

Notably, Cardano’s growth has substantially tapered, with new stakers joining the network dropping by 70% from last year. In 2022, the POS network welcomed over 250,000 stakers, averaging around 700 new stakers daily. 

These numbers were even more impressive in 2021, with the network bringing in about 2500 new stakers daily, allowing Cardano to cross the 1 million mark within a year. Since the bear market, the network has been struggling, only adding about 300,000 new stakers. 

While stakers continue to join the network, the current bearish sentiment has overshadowed the ecosystem’s growth prospects, triggering stagnation, investor exodus, and a decline in network activity. 

Santiment revealed that Daily Active Addresses on Cardano have slashed more than half this year, resulting in approximately 30,000 active wallets on the network. In contrast, Base, a recently launched Layer-2 network, boasts over 1 million daily active addresses on its network. 

Still, in light of these trends, Cexplorer.io offers a forward-looking projection for Cardano by alluding to its performance during bullish market phases. The data aggregator predicts Cardano could attract over 2.5 million new stakers by the next Bull market cycle in 2025. 

On the Flipside

• It’s worth noting that the 1.3 million stakers are not all unique and could involve single entities with multiple staking accounts. Realistically, Cardano has roughly under 1.2 million unique stakers on its network. 
• Charles Hoskinson believes that by the summer of 2023, Cardano could surpass Bitcoin, Ethereum, and every other cryptocurrency in decentralization. 
• Recent Santiment data named Cardano the industry’s top dev platform at press time, eclipsing competitors Polkadot and Kusama.

Why This Matters

Staking has become a crucial component for decentralization in the crypto industry, and Cardano emerges as a frontrunner, being among the pioneers to adopt it. Despite witnessing a decline in staking figures, data suggests Cardano could propel higher in the next bull run. 

More on Cardano: 

Cardano DeFi TVL Slips Below Base Chain as ADA Declines

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Ethereum Influencer Takes Shot at Cardano DeFi, Calls It Zombie Chain