Cardano has been the poster child of consistency in scaling and upgrading in the crypto industry, and it plans to continue its giant strides.
The 7th largest cryptocurrency in terms of market cap with a $36 billion valuation, Cardano has had an impressive showing in price performance for some time now. Despite its exceptional performance, Cardano’s value is down by 70%, a far cry from the all-time high it attained some seven months ago.
Since its creation in 2017, ADA has been hyped as the next big thing to happen to the cryptocurrency industry but has failed to match its earlier promises with performance. Its performance has been underwhelming.
It was not until the introduction of the Alonzo project that Cardano introduced smart contracts, culminating in Cardano becoming one of the leading DeFi platforms in the market. But in all these cases, the adoption of the network is low, and the total value locked (TVL) on the ADA’s smart contract is growing at a snail’s pace.
The general market correction that the industry has undergone throws some curveballs in the path of ADA’s growth.
However, it has been a challenging couple of months for ADA, and the network has been able to reverse the trend to emerge as one of the best performing DeFi networks in the industry.
Sentiment released a report on some of the most active digital asset projects on Github, and Cardano occupies the first place. This points to the work the team at Cardano is putting into turning the network’s fortunes; the latest project in the pipeline is Hydra, a layer-2 scaling protocol.
Introducing Layer 2
Scalability has been identified as one of the most critical issues in the cryptocurrency industry due to the influx of people and the inability to handle the rising demand for transactions by the existing protocol.
As demand for transactions rises, gas prices go through the roof, making it increasingly difficult to perform transactions on a DeFi platform due to high costs.
For emphasis, there is a limit to the number of transactions a blockchain network can handle per block, so a maximum number of transactions per second can be processed.
By using Layer-2, transactions can be aggregated and moved to the mainnet simultaneously, conserving gas use and making bulk transactions easier.
Will Hydra Be The Solution?
The upcoming project, Hydra, will transform Cardano and the DeFi ecosystem. A combination of faster and more affordable transactions will no doubt be the catalyst for the further growth of Cardano.
Meanwhile, Hydra is still in its development phase, but significant progress has been recorded in its development. The Hydra protocol was successfully test-run on the Cardano network last week.
Add in the impressive scaling projects on n Cardano and another bullish trend for the total value locked, and Cardano is set for dominance.
And the positive thing is that the team at Cardano is working toward making the dream a reality.
