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For Miners, Ethereum Is No Longer The Second Most Popular Proof-of-stake Network

A few days ago, the Terra network surpassed Ether in terms of total stacked value. Terra’s native currency (LUNA) has a total staked worth of more than $26 billion, according to crypto staking statistics service Staking Rewards, compared to Ether’s value of more than $24 billion. Solana maintained his lead with $32 billion, while Cardano and Avalanche finished fourth and fifth, respectively.

Staking is a technique used by cryptocurrencies that mine using the proof-of-work (POW) system. Miners must stake their own cryptocurrency in order to qualify for mining rewards in this system.

 

Unlike proof-of-work (POS), the POW method does not reward all network miners. Who gets paid is determined by the stake they supply, and mistakes reduce this stake as well. More stakers imply that more miners have faith in the network and that more transactions can be confirmed. The annual staking payouts for LUNA were set at 6.62 percent, compared to 4.81 percent for ETH.

To be sure, the increased staking value does not imply that Ethereum is no longer valuable. In reality, the Ether token is still the second most valuable after Bitcoin in terms of market capitalization. According to Coinmarketcap, Ether is the second most valuable cryptocurrency, valued at more than $309 billion, while Terra is ranked seventh, valued at more than $29 billion. Ether was trading at more than $2500, whereas LUNA was trading at roughly $81.

The POS mining technique is commonly regarded as a more ecologically friendly method of mining cryptocurrencies. According to reports, the POS system uses 99 percent less electricity than the POW method. According to Digiconomist, the Ethereum network consumes more electricity per year than the Netherlands, and a single Ethereum transaction can consume the same amount of power as an average US family.