If cryptocurrencies are granted trophies and bragging rights for having the most and greatest circulating supply, Cardano is a strong candidate to win the award right now. Cardano‘s ADA has officially surpassed Bitcoin as the network token with the most staked circulating supply.
The Cardano community is made up of long-term investors that have staked their coin to serve as validators on the network. Cardano uses a proof-of-stake system and gives its investors the opportunity to become network validators and receive incentives. Cardano’s ADA has become one of the most valuable coins in the market today, ranking fourth in terms of market capitalization.
Cardano unveiled a number of initiatives based on its smart contracts in September 2021 and urged DeFi fans to participate. That announcement sparked a flurry of alliances and novel network projects. These have enhanced Cardano’s usage and contributed to the cryptocurrency circulating supply reaching an all-time high. This week, ADA reached its all-time high in circulation supply and a market capitalization of $66.42 billion. As of press time, its current supply is 33.27 billion ADA, and it has a 74 percent stake on Coinmarketcap.
New tokens and DeFi initiatives can use a proof-of-stake (PoF) protocol to mine tokens by creating a liquidity pool from which validators can earn. Because it eliminates the need for physical mining equipment and the related costs, the PoF protocol has gained popularity in recent blockchain initiatives.
Cardano has a little more than 74% of the total ADA in circulation locked in its PoF protocol, implying that the network has a large pool of validators. It’s no surprise that Cardano transactions are lightning quick and validated in less time than bitcoin. Cardano now has 24.56 billion ADA staked by a total of 921,330 delegates.
The PoF protocol is incentivized; delegates can earn incentives in ADA tokens or other tokens as arranged by the platform they are staking on. As of now, only roughly 8.71 billion ADA have been staked and are available on the open market. This is made more interesting because Cardano allows stakers to remove their ADA tokens from the pool and withdraw or exchange for other tokens art anytime. There are no limitations to this and ADA has not made it mandatory to stak for a certain period before withdrawal. Yet, more ADA holders are staking
Cardano Price Trend
Despite its huge trading volume and circulating supply, ADA hass not done well recently. ADA currently trades at $1.99 (on coinmarketcap). Since hitting its ATH in September, ADA has struggled to reach $2. Its price action shows a tiny indecisive candle on the daily chart coming after a number of smaller candles. Although analysts predict a general bullish run as the year draws to a close, ADA has not shown signs of a momentum buildup.
Things can change, however. The crypto market is known for its volatility and events like an increase in staked circulating supply can do wonders for a token.