Will Cardano ADA finally triumph in 2022?
Cardano in turmoil despite smart-contracts. Will ADA be able to take off in 2022?
The end of 2021 has been eventful for the Cardano blockchain. Indeed, the announcement of smart contracts in mid-September was not the expected moment of glory. Technical problems accumulated and it took until the end of the year for the first applications to arrive. Even if the network is still very slow, we can hope that the year 2022 will be that of the consecration of the Cardano ADA model. In any case, this is what the transaction volumes on the network and the purchases of the whales suggest.
- From the moment of glory to the moment of doubt.
- The first applications on the Cardano network
- Signs of a revival
A Difficult Launch For The Cardano Blockchain
Charles Hoskinson ‘s blockchain has managed to attract an entire community around it. This fervor allowed ADA to reach 3rd place in terms of capitalization and reach 3 dollars at the beginning of September. Moreover, the ecological concerns of Charles Hoskinson correspond more and more to those of our societies. For this reason, Cardano has chosen the least energy-intensive consensus possible. We could therefore expect that the opening of Cardano to smart-contracts on September 12 would be a new step towards this consecration. Unfortunately, it didn’t happen that simply.
The programming language used by Cardano’s virtual machine was not familiar to many developers, and the deployment of applications encountered several problems. It therefore took until December for the first DEXs, the basic engine of any blockchain , to appear. The course of the ADA obviously passed on these difficulties with a retracement up to 0.8 dollars today. Although most of the problems are solved, many users regret the slowness of the network. Cardano will even have to use a side-chain, Milkomeda, to increase its scalability. This side-chain will also facilitate links with other blockchains, in particular blockchains of the Ethereum universe. Hopefully this is the prelude to the end of the technical problems.
Cardano, The Future Ethereum Of DeFi?
Despite all these setbacks, the first applications are developing little by little. About twenty DEXs are or will be present, including SundaeSwap, the most used. But in fact, more than 492 projects are being built. The difficulties have hidden the huge expectation behind this blockchain. DeFi protocols, NFT, gaming…, all sectors are already present. It is currently difficult to know which projects will prevail.
On the metaverse side, Cardano is not left out. Pavia, Cardania, Cardano Village to name a few have attracted a lot of people who want to buy a land as soon as possible to hope either for a significant gain in the event of resale or to be able to develop real infrastructure on it. Once the bridges are fully operational and allow the development of real interoperability, we should probably expect a massive increase in users on this network. It will be at this time that we will witness the full-scale test of Charles Hoskinson’s blockchain.
Whales Invest Heavily In ADA
Not only is the number of projects exploding, but so is ADA’s transaction volume. This indicator is perhaps the most positive because a network without users does not have much value. We have now reached a daily volume of almost $3 billion in ADA! In addition, many transactions over $100,000 show that whales and institutions are positioning themselves on the network. BNB ‘s largest whales acquired over $11 million in ADA.
The number of addresses on the network has increased by 167% in two months. For now, Cardano remains only 33rd in terms of value deposited on the protocols according to the Defilama site. But the progression has been constant since the launch of the network, so its place is not relevant to take into account for the moment. The work of Charles Hoskinson’s teams to increase the scalability of the network will be the condition for a massive adoption of the network.
Ever since the ADA bull rally in September, Cardano had mostly been the subject of taunts from the cryptosphere. Repeated delays, difficulty in developing applications on the network, slow transactions have tarnished the image of the green blockchain. But the dark hours now seem behind Cardano. The growth of the network in terms of the number of projects, users but above all in terms of transactions shows its dynamism. The presence of the whales on the network itself shows their interest in what is being built there. With all its elements, we can expect a great year for Cardano in 2022.