More than 70% of ADA Worth $31 Billion Is Now Staked as Anticipation for Alonzo Smart Contract Grows
ADA holders have staked over $31 billion worth of ADA ahead of the eagerly awaited launch of the Cardano Alonzo smart contract.
The crypto society has been waiting for this debut for a while now, ever since Cardano announced the issue earlier in the year. The launch is now getting closer with initial plans pointing to a possible launch in August.
The launch is expected to be a major turning point for Cardano, especially in terms of boosting the network’s adoption and encouraging a price appreciation for the digital currency.
PoolTool, the renowned data provider, estimates that about 71.7% of ADA’s supply that is currently in circulation, has been staked. This proportion is worth $31 billion, and it’s been staked on 2,665 active pools.
On Friday, June 02, ADA’s price stood at $1.30. It’s ranked the fifth biggest digital currency in terms of market capitalization.
Interestingly, it’s also the leading cryptocurrency when it comes to staked value. Statistics show that Ethereum comes in second with an estimated staked value of $12.2 billion.
Polkadot, Solana and Algorand are also in the top five category of the most staked cryptocurrencies.
One aspect that makes Cardano’s staking favorable is the fact that users are able to generate passive income in the form of ADA without necessarily locking up their assets for a given period. With other protocols, there’s a specific minimum lock-up period set to be able to earn the staking rewards.
Investors have remained bullish on ADA as they await the enforcement of the full smart contract towards the end of summer.
As announced earlier, Input Output Hong Kong, more popularly referred to as IOHK, established the Alonzo hard fork less than two months ago. This created room for the smart contract capability, which will be implemented at some time in August.