Ethereum’s proof of stake has been in the news again after a slashing event took out a bunch of validators. Slashing just means a validator loses some of their coins when they make a mistake or break the rules.
It’s got people asking again how Ethereum’s model compares with Cardano’s and whether staking is really as safe as it looks on paper.
What Happened on Ethereum?
On Ethereum, you need 32 ETH to run a validator. That’s the stake you lock up, and it’s supposed to keep validators honest. If they double sign, go offline for too long, or submit bad data, they can be penalized. The penalty is slashing, which literally destroys part of that ETH.
This latest case happened because of operational errors. A group of validators got hit and together they lost about 11.7 ETH, roughly $52,000. For Ethereum as a whole that isn’t much, but since it happened to many validators at once, it stood out. It’s also the biggest slashing event the network has seen since 2022.
The real worry isn’t the $52k though. It’s what happens if something similar goes wrong at a large staking provider like Lido or Coinbase. DeFi leans heavily on liquid staking tokens like stETH. If a big slashing incident led to one of these tokens losing its peg, the effect could ripple through lending and collateral systems. In the worst case, it could cause a cascading collapse.
A depeg is when people no longer believe a staking token holds the same value as the ETH it represents.
Cardano’s Different Approach
Cardano doesn’t use slashing at all. If a pool fails to produce blocks, the only impact is that delegators earn less for that period. The funds are never destroyed.
That setup appeals to people who don’t want to risk their principal. It also makes staking easier for small holders. Any amount of ADA can be delegated straight from a wallet. On Ethereum you need the full 32 ETH, which prices out most users.
Because of that, Ethereum staking is now concentrated in big operators like Coinbase and Lido that let users pool funds. Cardano tries to avoid this kind of concentration by limiting pool size through its rewards system. That way, smaller pools can still compete, and the network stays more spread out.
Rewards and the Search for Yield
The difference in design also shows up in how risk is handled. Ethereum puts pressure on validators to run perfectly, while Cardano spreads the risk more evenly. For everyday users who just want some passive income, that’s a noticeable difference.
Both networks pay out around 3 to 5 percent a year, depending on conditions. Those rates haven’t moved much. Still, plenty of investors are chasing higher rewards. Newer blockchains and tokens are offering double-digit returns, which naturally pulls in people looking for more than the single-digit yields on ETH and ADA.
ETH and ADA Staking Alternatives
For those after staking returns higher than the ones offered by ETH and ADA, it’s best to explore new, low-cap alternatives like Best Wallet Token.
A multi-utility token tied to a multichain, self-custodial wallet, Best Wallet Token offers a combination of double-digit APY and access to several other high-yield staking opportunities within the DeFi space.
At the time of writing, token holders can earn up to 83% annual percentage yield, providing an attractive incentive for early adopters, who stand to benefit the most as rewards diminish in later stages.
Where Best Wallet Token also excels as one of the best ETH and ADA staking alternatives is in its ability to unlock several passive income opportunities through the Best Wallet app, giving investors multiple avenues to maximize their returns. Thankfully, Best Wallet remains fully self-custodial, meaning users retain complete control of their assets, even as they explore staking opportunities.
Combine that with its no-KYC posture and security-first design, and it is easy to understand why Best Wallet has grown increasingly popular among those scouting for a reliable hub for multi-asset staking.
Basically, Best Wallet prides itself on being a multichain wallet, with plans to add support for more than 60 chains. It has already hit the ground running by incorporating popular networks like Bitcoin, Ethereum, Base, Polygon, Binance Smart Chain, and, most recently, Solana. This broad multichain functionality opens the door to even more staking opportunities across these ecosystems. And as more blockchains are added, users can expect additional staking options in the future.
Beyond staking, holding Best Wallet Token unlocks valuable perks within the Best Wallet ecosystem, including reduced transaction fees, governance rights, and access to early-stage cryptos with promising potential through the “Upcoming Tokens” tool.
Little wonder why the low-cap coin has seen impressive demand in its token sale, raising upwards of $16 million at press time. Its wallet ecosystem, on the other hand, also continues to steal the spotlight, especially with its accelerating user growth metrics and regular updates.
The wallet has been dubbed the best crypto wallet of 2025 by ClayBro, a popular YouTuber with over 136k subscribers.
Download Best Wallet | Visit Best Wallet Token Sale
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