Cardano’s DeFi Footprint and Network Activity Show Uptick in Users
- Cardano (ADA) experienced a 23.9% price surge on July 13, sparking speculation about further gains.
- Three reasons support Cardano’s bullish momentum: potential integration of other blockchains, increased activity in decentralized applications, and decreased regulatory risk.
- Cardano was referred to as a potential security by the SEC, but this does not pose a direct risk to Cardano or its development companies.
- Charles Hoskinson, co-founder of Cardano, proposed incorporating Algorand as a Cardano sidechain, which could help Algorand avoid regulatory scrutiny and boost Cardano’s ecosystem.
- Cardano’s Total Value Locked (TVL) in ADA terms increased by 10% month-on-month, reaching 550 million ADA, and NFT sales surged by 56% to $3.1 million.
Regulatory Setbacks and Limited Demand Still Pose Risks
- Despite the beneficial XRP decision, Cardano’s ICO was not explicitly cleared, and the ongoing XRP trial will determine Cardano’s regulatory status.
- ADA’s TVL of $200 million lags behind other layer-1 smart contract alternatives, suggesting limited demand for ADA’s services.
- To surpass the $0.40 mark, Cardano needs to continue growing and delivering on its promises, including planned updates for 2023.
- Important upcoming updates include the Hydra layer-2 solution and the Basho layer-1 scalability and performance improvement proposal.
Cardano’s recent price surge and increased network activity are promising signs for the project. The potential integration of other blockchains and the growing activity in decentralized applications and NFT markets demonstrate Cardano’s potential. However, regulatory setbacks and limited demand for ADA’s services are still challenges that need to be addressed. Cardano will need to continue delivering on its promises and implementing planned updates to solidify its position in the market. It’s a waiting game to see if Cardano can sustain its recent bullish price action and break above the $0.40 mark.