Financial institutions run BTC and ETH
ADA whale believes that Cardano has found the “right balance between dream and reality” when commenting on the influence of major financial institutions and miners on Bitcoin and Ethereum.
ADA whale shared on twitter that large financial institutions including exchanges and mining pools now run the two largest cryptocurrencies BTC and ETH.
this is the “antithesis of the original crypto dream of the individuals who run the network.
Whale added that Cardano has more than 1,100 block-producing pools and non-custodial delegation to find “the right balance between dream and reality.”
5 institutions hold 64% of all staked ETH
Following a report from blockchain analytics platform Nansen, the ADA whale has highlighted that 5 organizations holding 64% of all staked ETH before the Ethereum Merge upgrade.
These institutions include cryptocurrency exchanges Kraken, Coinbase, and Binance, which hold ETH on behalf of their users. Staking services offered by exchanges allow users to stake ETH without meeting the 32 ETH threshold required to become validators on the network.
A recent survey shows 64% of staked Ethereum is controlled by 5 entities
1. Lido Finance 🇬🇧
2. Unlabelled 🇫🇲
3. Coinbase 🇺🇸
4. Kraken 🇺🇸
5. Binance 🇰🇾 #BlockBet #Bitcoin #Crypto #NFTs #Eth pic.twitter.com/HzA2MRYxlA— BlockBet (@BlockBet_) September 12, 2022
Besides, the leading institution when it comes to ETH staking is Lido Finance, which is a decentralized protocol that provides users with liquidity staking services.
Bitcoin Mining Pools
Similarly, Bitcoin has major mining pools – including F2Pool, Binance’s pool, and AntPool – dominating the hash rate.
However, these miners are made up of thousands of smaller miners, which can prevent a single entity from having control of 51% of the network’s hashrate.
In August, the ADA whale explained that it believes Cardano could become “bigger” than “anything seen in cryptocurrencies before” if decentralized management of the cryptocurrency network works effectively.
