Cardano Staking Demand
Cardano (ADA) has seen a 40% increase in value this year, with 31% of that growth happening in October. This surge is due to the rising demand for its native token, which investors can stake to earn staking rewards.
According to StakingRewards.com, Cardano is the third-largest cryptocurrency by Staking Market Cap. As of November 7, there is $7.94 billion at stake in Cardano’s network, with a total of 22.98 billion ADA tokens locked by validators and delegators in the protocol.
With a market capitalization of $11.83 billion, 63% of all ADA in existence are locked into the protocol’s staking system, and validators are expected to be rewarded yearly at 3% of the staked amount. However, the “Real Reward Rate” is adjusted by Cardano’s supply inflation and is currently at 0.38% per year.
Cardano Price Analysis
Cardano’s monthly chart shows a bullish uptrend driven by the growing demand for staking. ADA is currently trading at $0.34, with a high of $0.37 on November 6 resulting in a 4.3% intraday loss.
The cryptocurrency has gained 16% in the week, with its capitalization increasing by $2 billion. However, it is still trading close to its price from one year ago at $0.40 per token, which presents a significant resistance level that needs to be surpassed for further growth.
The ability of Cardano to break the $0.4 zone will depend on the continued growth in its ecosystem demand.
Hot Take: Cardano’s Promising Future
The increasing trend in Cardano staking indicates that investors are opting to stake their ADA rather than sell it, showing confidence in the cryptocurrency’s future potential. Further developments and news could influence Cardano’s performance in the coming weeks as it continues to grow its staking ecosystem.
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