According to CryptoRank, ADA has credible backing with 12.3 billion worth of tokens
CoinRank, an informational and statistical portal dedicated to cryptocurrencies, has compiled a ranking of the top 15 coins based on market capitalization. The subject of this news is Cardano closes the top three. The Input Output project led by Charles Hoskinson has the ADA token, which accounts for 70.6% of the market capitalization, which is equivalent to $12.3 billion.
First place, not surprisingly, went to Ethereum (ETH), with $21.3 billion of the entire capitalization staked in anticipation of the blockchain’s transition to PoS consensus. Despite the upcoming upgrade to Ethereum 2.0, the percentage of coins blocked for participating in the transition is only 10% of the market cap. Second place went to Solana (SOL), with 75.5% of the capitalization, or $15.5 billion, accumulated in the pool of deposits.
Why is this bullish for Cardano in the long term?
In fact, there is no secret here to those who are strong supporters of the IOHK and Hoskinson approach. Cardano’s founder initially positioned the project as a PoS blockchain, and all of Cardano’s long-term prospects were so obvious at first.
The PoS model is, in theory, an ideal model for the democratic structure of a crypto project, where the impact of a minority with a large number of coins on the entire ecosystem is much less than that of PoW. This fact attracts more mid-level investors to a crypto project and this, in turn, increases the number of active users of the coin. Furthermore, ADA’s large share of staking indicates the desire of Cardano investors to profitably hedge the token. Considering that this share is equivalent to 70.6% of the entire market capitalization of the project, we can say that this mechanism and interest suits them so much that they are in no hurry to get rid of their ADA.
In this way, staking provides solid support to ADA and strengthens the foundation of the coin. When the foundation is strong, you can build without fear.