With the widespread use and adoption of DeFi, most blockchains are doing everything possible to maximize it. Cardano also is not left out as it is rapidly gearing towards the introduction of decentralized finance tools on the platform with the proposed launch of its ERC-20 converter. According to the plans and projections of the platform, this new tool is set to be introduced next week. For investors on the platform, this development is a huge step in the right direction both for business and the platform’s credibility. The implementation of this converter would allow Ethereum tokens to move to the Cardano blockchain.
What this simply means is that Ethereum tokens would now be available for trade on the platform thus expanding the variety of available tokens. This is because the coming of the tool next week would give way to multiple Ethereum tokens coming aboard the blockchain in the following weeks. Therefore, users can now choose from different Ethereum based tokens for their transactions. The first of these tokens to migrate to Cardano would be SingularityNET’s native coin, as plans are already underway for its adoption.
The announcement for the converter’s launch was made at the recent Cardano 360 event where it was also revealed that its introduction would be as soon as possible. This migration tool which was initially disclosed in May would allow users to move Ethereum based coins over to Cardano. Once this tool has been integrated, users on the blockchain would enjoy Cardano’s transaction volume and lesser trading rates while trading Ethereum tokens. Traders would also enjoy adequate security, lessened expense, and easy use of the blockchain after the converter’s launch which is reassuring.
The launch of this DeFi tool was initially set to come after the Alonzo hard fork, a program planned to introduce the smart contract feature to the platform. For this smart contract program, the projected launch date is September 12 after which users can look forward to seeing the migration tool take effect. Furthermore, the AGIX coin which is owned by Singularity NET is slated to be the first of its kind to be introduced after the converter’s launch. This is indeed good news even as over a hundred companies are coming under the control of Cardano. Indeed, it is a breakthrough for the Cardano blockchain.
Impact on Cardano Price
Recent developments on this platform have seen the price of Cardano maintaining a steady upward movement since July 20 drop. With the latest progress, it is projected to go higher. Currently, the price is hovering around the $2.49 and $2.55 levels. For it to go higher as predicted, it must maintain these support levels. A favorable prospect is therefore considered as so far, the price has seen a consistent upward movement. With the introduction of Ethereum tokens, analysts expect Cardano to record an increase in transaction volume which would continue the ascent of the price.