2022 has been a year to forget for Cardano so far. After a rally in mid-January, in which ADA briefly broke above the $1.60 mark, the cryptocurrency suffered heavy losses in the following months as a result of the Ukraine war.
But the cryptocurrency had already struggled with a massive loss in value. Hopes were high when Cardano made the network’s smart contract compatible with the “Alonzo” fork in mid-September last year. Shortly after, the developer company IOHK launched its own platform for decentralized applications, the so-called dApps. At the time, IOHK chief Charles Hoskinson drew a picturesque landscape of “thousands of dApps” that would in future run on the blockchain of self-proclaimed competitor Ethereum. As a result, ADA shot up to a new all-time high of $3.09.
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Cardano: between ambitions and reality
However, the current state of the network is far removed from its own ambitions. Currently, the Cardano blockchain only has 69 decentralized applications. And a look at the total value of all assets stored in the Cardano protocol (TVL) reveals that the network is falling behind its own expectations. While about $7.5 billion is “locked” in the Solana network, Cardano is only a fraction of SOL with $317.4 million, from DeFi-primus Ethereum ($125.9 billion TVL), not to mention. The community was increasingly disappointed and the crypto market also reacted with doubts to Hoskinson’s sometimes flowery promises.
Is the ball rolling now?
ADA prices bottomed out on February 24, shortly after Russian President Putin ordered his troops to invade Ukraine. At the same time, ADA fell well below the $1 mark and was trading at $0.77 at one point. However, a lot has happened on Cardano since then.
According to Hoskinson, 2022 should be the year of updates. Among other things, the “Hydra” scaling solution claims to significantly increase network speed. A first test phase was launched in mid-March. If successfully integrated into the Cardano mainnet, the performance of the blockchain should increase significantly. One million transactions per second, according to the forecast. A faster network should also attract more dApp developers to the Cardano blockchain.
The network also receives external support. Milkomeda, a sidechain project from blockchain company dcSpark, announced the launch of Milkomeda C1. This allows Ethereum dApps to run on the Cardano network. Hoskinson congratulated the developers for completing it. Twitter.
Also, US crypto exchange Coinbase introduced staking rewards for Cardano a few days ago, making ADA more interesting for US investors.
The month of March turns out to be a savior for the Ethereum competitor. In the last week alone, ADA increased by 32 percent, in the last 14 days it was even almost 51 percent. At the time of writing, the cryptocurrency is trading above $1.20 again. BTC-ECHO market expert Stepfan Lübeck analyzed whether Cardano has thus overcome the dry spell of recent months.
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