Ethereum Validator Slashing Puts Cardano’s Resilience In Focus – Here’s Why

2025/09/13 09:00

A recent slashing of Ethereum from different validators has reignited the debate around staking models, with many pointing to Cardano’s more resilient structure as a key differentiator. While Ethereum’s system penalizes validators for downtime or misbehavior, Cardano’s staking approach avoids such risks, offering delegators security without the fear of losing funds. 

Why Simplicity And Resilience Are Cardano’s Key Advantages

On September 10, a slashing of 11.7 ETH from 39 Ethereum validators highlights the advantages of Cardano’s staking structure. Crypto analyst Dori has highlighted on X the fundamental differences in staking requirements and risks between the two networks. On Ethereum, it is structurally impossible to stake 0.1 ETH directly on ETH, but an individual must stake a minimum of 32 ETH and operate a validator node themselves. 

However, platforms have been built on Ethereum to allow staking with as little as 0.1 ETH, and liquid tokens are issued. The critical difference is that, due to the slashing mechanism, Ethereum’s structure carries the risk of a cascading collapse. This has given rise to platforms like Ankr and Lido Finance, which pool ETH from many users, run validators, and issue liquid staking tokens such as ankrETH and stETH to solve the problem of locked-up funds.

Ethereum

In this incident, an operational mistake by the operators of 39 validators led to a slashing penalty of 11.7 ETH, which is worth approximately $52,000. If a larger slashing event were to occur, it could lead to the de-pegging of the liquid staking tokens, potentially triggering a cascading collapse as DeFi ecosystem protocols built upon them.

On Ethereum, iquid staking platforms were developed to remove obstacles to staking, and liquid tokens were distributed to address the issue of lock-ups. In contrast, Cardana’s staking model allows anyone to stake as little as 10 ADA in a stake pool without worrying about slashing. There are no lock-up periods, and a user’s staked funds are never at risk of being lost, even if their chosen stake pool misbehaves.

Fundamentally Different Approaches To Staking

Cardanians (CRDN) also stated that a critical flaw in Ethereum’s staking model has been exposed, highlighting the fundamental advantages of Cardano’s design. The data shows that the Ethereum staking exit queue has hit an all-time high, forcing users who unstake their ETH to wait an estimated 46 days to get their funds back.

However, Cardano’s ADA staking model offers a fundamentally different experience, with liquid staking and no entry or exit queues. When a user stakes their ADA, the funds remain in their wallet and are always available for use or transfer, and earn rewards without being locked up. “The design is fundamentally better,” the expert noted.

Ethereum
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
Share Insights

You May Also Like

Eric Trump Clarifies Ties in Asia Other Than Metaplanet, MTPLF Stock Slips

Eric Trump Clarifies Ties in Asia Other Than Metaplanet, MTPLF Stock Slips

The post Eric Trump Clarifies Ties in Asia Other Than Metaplanet, MTPLF Stock Slips appeared on BitcoinEthereumNews.com. Eric Trump, US President Donald Trump’s son, on Monday clarified his allegiance to Metaplanet only in the Asian region. The move comes in response to rumors stirring about his involvement in another company in Asia amid his visit to the region. Eric Trump Clarifies Commitment to Metaplanet Only Eric Trump took to the X platform on September 8 to clarify that he is involved only with Metaplanet, aka Asia’s Strategy. He said Bitcoin treasury firm “Metaplanet is the only company I am aligned with in the region.” His photo with the president of ABC (formerly GFA) was circulated in Japan’s investment community. The speculation of Eric’s ties with ABC triggered a rise in the stock price of the firm. It is believed that foreign investors saw this photo and purchased ABC, believing it would definitely skyrocket. Eric Trump with ABC President. Source: X On Monday, GFA stock tumbled more than 17.79% to 462 JPY after Eric denied any involvement with the firm. The 24-hour low and high are 462 JPY and 630 JPY. He said: “I don’t know who this is, nor do I have ANY involvement in this company. This was a picture from a conference when I was in Asia. If someone is representing that I’m involved in this company, let me be clear – I am not.” Eric Trump was earlier appointed as strategic advisor to Metaplanet, Japan’s largest corporate holder of Bitcoin. He also attended Metaplanet’s shareholder meeting last week. Today, Metaplanet increased its total Bitcoin holdings to 20,136 BTC. The firm purchased 136 BTC for $15.2 million at an average price of $111,783 per BTC. Metaplanet and MTPLF Stocks Slump At the time of writing, Metaplanet stock closed more than 2.96% lower at 688 JPY. The stock continues its decline amid heavy short positions by…
Share
BitcoinEthereumNews2025/09/08 13:26
Share
Spot Bitcoin ETFs Achieve Phenomenal 5th Straight Day of Inflows

Spot Bitcoin ETFs Achieve Phenomenal 5th Straight Day of Inflows

BitcoinWorld Spot Bitcoin ETFs Achieve Phenomenal 5th Straight Day of Inflows Spot Bitcoin ETFs are making waves, as the latest market data paints an incredibly optimistic picture. For an impressive fifth consecutive trading day, these innovative investment vehicles have seen substantial net inflows, signaling robust and growing investor confidence. This consistent positive trend marks a pivotal moment for the cryptocurrency landscape, highlighting a significant shift in how traditional finance interacts with digital assets. What’s Driving the Phenomenal Inflows into Spot Bitcoin ETFs? The recent surge in capital flowing into Spot Bitcoin ETFs has been remarkable. On a single day, these funds collectively recorded a staggering $642.22 million in net inflows, representing a sustained pattern of investor interest and belief in Bitcoin’s long-term potential. BlackRock’s IBIT led the charge, attracting an impressive $260 million. Fidelity’s FBTC was close behind, securing a substantial $310 million. Other funds also saw positive movement, including Bitwise’s BITB ($29.16 million) and Ark Invest’s ARKB ($19.37 million). Crucially, no ETFs reported net outflows, underscoring widespread positive sentiment. This collective vote of confidence from institutional and retail investors alike is a powerful indicator of market health and growing appetite for direct exposure to Bitcoin through regulated channels. Why Are Spot Bitcoin ETFs Becoming So Popular? The increasing popularity of Spot Bitcoin ETFs stems from their ability to bridge traditional investment and digital assets. They offer a straightforward, regulated way for investors to gain exposure to Bitcoin’s price movements without the complexities of direct cryptocurrency ownership, like managing private keys or navigating exchanges. Key benefits driving adoption: Accessibility: ETFs trade on traditional stock exchanges, making them easily accessible. Regulation and Trust: Stringent financial regulations provide security and trustworthiness. Diversification: Spot Bitcoin ETFs offer a new avenue for portfolio diversification. Liquidity: High liquidity ensures efficient buying and selling. This ease of access, combined with regulatory oversight, makes Spot Bitcoin ETFs an attractive option for both seasoned and new crypto market participants. What Do These Sustained Inflows Mean for the Crypto Market? Consistent net inflows into Spot Bitcoin ETFs carry significant implications for the broader cryptocurrency market. This sustained positive trend suggests a maturing market and an evolving perception of Bitcoin as a legitimate asset class, shifting from speculative trading to more strategic, long-term investment horizons. Moreover, active participation from financial giants like BlackRock and Fidelity lends immense credibility. Their involvement brings substantial capital and validates Bitcoin as a serious investment contender. This institutional embrace can pave the way for further innovation and broader acceptance of digital assets. Sustained demand for Spot Bitcoin ETFs can also lead to increased price stability for Bitcoin, as consistent inflows absorb selling pressure and provide a solid demand floor. This, in turn, can attract even more investors, creating a positive feedback loop for the entire crypto market. Looking Ahead: The Future Impact of Spot Bitcoin ETFs The continued success of Spot Bitcoin ETFs is setting a powerful precedent for cryptocurrency investment. While current inflows are impressive, they could be just the beginning of a larger trend towards institutional adoption and integration of digital assets. Potential challenges like market volatility and evolving regulatory landscapes remain inherent to the crypto space. For investors, these developments offer a compelling opportunity to engage with Bitcoin in a more traditional framework. Monitor these trends closely; sustained institutional interest often precedes broader market shifts. The transparency and accessibility offered by these ETFs are democratizing access to Bitcoin, potentially transforming how diverse investors build portfolios. In conclusion, the phenomenal five-day streak of net inflows into Spot Bitcoin ETFs, spearheaded by industry titans, is more than just a statistic. It’s a testament to Bitcoin’s growing legitimacy and an exciting indicator of its pivotal role in the future of finance. This trend underscores a powerful shift, inviting a new era of confidence and strategic investment in the digital asset space. To learn more about the latest explore our article on key developments shaping Bitcoin institutional adoption. Frequently Asked Questions About Spot Bitcoin ETFs What is a Spot Bitcoin ETF? A Spot Bitcoin ETF is an exchange-traded fund that directly holds Bitcoin. It allows investors to gain exposure to Bitcoin’s price movements without having to buy, store, or manage the actual cryptocurrency themselves. Why are BlackRock and Fidelity’s ETFs leading the inflows? BlackRock and Fidelity are major financial institutions with extensive reach, established trust, and robust distribution networks. Their brand recognition and existing client bases naturally attract significant capital to their respective Spot Bitcoin ETFs. How do Spot Bitcoin ETFs differ from Bitcoin futures ETFs? Spot Bitcoin ETFs hold actual Bitcoin, aiming to track its current “spot” price directly. Bitcoin futures ETFs, on the other hand, invest in Bitcoin futures contracts, which are agreements to buy or sell Bitcoin at a predetermined price in the future, and can sometimes trade at a premium or discount to the spot price. Is investing in a Spot Bitcoin ETF less risky than buying Bitcoin directly? While Spot Bitcoin ETFs mitigate some risks associated with direct crypto ownership (like security of private keys), they are still exposed to Bitcoin’s inherent price volatility. The regulatory oversight of ETFs can offer some investor protection, but market risk remains. What does “net inflows” mean in the context of ETFs? Net inflows refer to the total amount of money invested into an ETF over a specific period, minus any money withdrawn. Positive net inflows indicate that more capital is entering the fund than leaving it, signaling growing investor demand. Found this article insightful? Share the news about the remarkable growth of Spot Bitcoin ETFs with your network! Your support helps us continue delivering vital market insights. Connect with us on social media and spread the word! This post Spot Bitcoin ETFs Achieve Phenomenal 5th Straight Day of Inflows first appeared on BitcoinWorld.
Share
Coinstats2025/09/13 10:40
Share