Volume Of ADA Staked On Cardano Network Reaches Record High

Cardano holds bragging rights for the network with the highest proportion of its circulating supply staked and it has not let go of this title. Cardano’s community is home to investors who are investing for the long term rather than trying to take short-term profits from the market. This means that most investors have their coins staked on the platform to serve as validators on its proof of stake mechanism.

The blockchain has grown in popularity since it announced smart contracts capability in September. Since then, various partnerships and initiatives focused on increasing usability on the network have been announced. This move seems to have paid off as Cardano saw a record number of total circulating supply hit an all-time high this week.

Total ADA Staked Hits 73% Of Supply

Cardano saw the total ADA staked on its network hit a high of 73.15% on Thursday, an impressive number compared to the number of coins staked on its direct competitors. At this point, the network had a total of 23.9 billion ADA staked across 921,323 delegators. The total circulating supply of ADA is only 33.26 billion coins, meaning that only less than 10 billion are not staked.

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This represents the growing confidence in the future of the project, which some in the space have claimed to be the blockchain of the future. An interesting fact behind Cardano’s staking network is that the coins are not locked in place. Unlike Ethereum, ADA holders are still able to transfer out their staked coins if they wish to sell. However, a large proportion of its community has chosen to stake, speaking volumes to the faith of its holders in the project.

Cardano Performance In The Market

Despite its impressive new partnerships and projects, Cardano has not fared too well in the crypto market. The altcoin has not followed the rising trend of bitcoin in the past weeks, which has left ADA struggling to maintain its value above the $2 level. Short-term forecasts for ADA are also generally bearish given the lagging momentum of the digital asset.

ADA price struggles to hold $2.02 | Source: ADAUSD on TradingView.com

ADA has greatly fluctuated in recent times and Wednesday saw the altcoin crash below $2 for the first time in over a month. The price of the digital asset had promptly recovered after the crash. However, the damage had already been done. ADA’s loss of steam over the past few weeks became even more evident as the price struggled to hold above $2.01.

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Forecasts remain bleak for the asset, especially now. Since it has so far not rallied with the rest of the market alongside bitcoin, Cardano’s price could very well see a retest of $1.7 before this cycle is over.

At the time of writing, the price of the digital asset is trading at $2.02 after posting a small recovery from its dip below $2. Cardano sits at 5th place on the crypto top 10 with a market of $67 billion.

Featured image from Bitcoin News, chart from TradingView.com

by Best Owie on October 30, 2021 at 04:30AM