- Cardano is set to make a big return as it promises to make three critical releases this year
- The network will improve on scalability solutions, new stablecoins and oracle growth
- Analysts believe 2023 will be a better year for Cardano
The Ethereum (ETH) competition in 2021 and 2022 was tight between various DeFi projects. The crypto market saw roaring gains from the likes of Solana (SOL), Avalanche (AVAX) and Polkadot (DOT). In 2021, Cardano (ADA), one of the most popular altcoins, generated a lot of hype as it surged from $0.32 to more than $3 (its latest all-time high) in just a few months.
However, the price died down, much like its other competitors. Cardano’s price depreciation may not have been as dreadful as the rest in the market, but it never rallied in 2022.
Now, the project is looking to bounce back with three solutions: new stablecoins in the network, a new Layer-2 scalability solution, and updated oracles.
Cardano to Release Three Solutions in 2023
The Ethereum (ETH) competition in 2021 and 2022 was tight between various DeFi projects. The crypto market saw roaring gains from the likes of Solana (SOL), Avalanche (AVAX) and Polkadot (DOT). In 2021, Cardano (ADA), one of the most popular altcoins, generated a lot of hype as it surged from $0.32 to more than $3 (its latest all-time high) in just a few months.
However, the price died down, much like its other competitors. Cardano’s price depreciation may not have been as dreadful as the rest in the market, but it never rallied in 2022.
Now, the project is looking to bounce back with three solutions: new stablecoins in the network, a new Layer-2 scalability solution, and updated oracles.
If Cardano keeps its promises, it may soon make big positive headlines as a faster and smarter choice than Ethereum. The year 2023 could be a breakthrough year for Cardano (ADA). Ethereum may realize its vision of a smart contract blockchain by the end of the year.
New Stablecoins
One anticipation of investors is that a stable asset might benefit Cardano’s development in the realm of decentralized finance. This asset comes as a nonsynthetic stablecoin that remains strong and secure, unlike Terra’s failed UST stablecoin.
The stablecoin peg may have been a major issue for many Layer 1 projects last year, but ADA investors look forward to the launch within the first quarter of 2023.
Experts anticipate that the Cardano network will house two stablecoins:
- USDA
- Djed
USDA is a controlled digital currency backed by the US dollar. The usage of fiat currency will maintain the value but will continue to use the network’s efficiency and other Cardano perks.
Meanwhile, Djed is a token developed in tandem with Coti. Cardano’s signature smart contract technology will maintain the stablecoin’s dollar value. Djed will keep its peg by burning certain stable assets and saving specific currencies. It also safeguards the peg by mining its way to a stockpile of base currencies.
Hydra Layer 2 Scalability
Announced in October 2022, Hydra, a Layer 2 scalability solution, seeks to boost transaction speed through low latency and high throughput without giving up low transfer rates. Cardano made significant progress toward scalable network performance by implementing the Vasil hard fork last year but did not push through with Hydra until the latest announcement.
Established blockchains like Bitcoin and Ethereum proved that a scalable network is a continuous problem for cryptocurrencies hoping to be used in the real world. In response, Hydra seeks to solve it with streamlined processes to make transactions in everyday life easier.
The Hydra Head, as the first member of the scaling, will provide access to protocols that developers can build over Cardano. The protocols will possess complexity and uniqueness.
According to Cardano founder Charles Hoskinson, this Hydra layer enables a wide variety of activities, including rapid completion, microtransactions, and micro-gorging. According to Cardano founder Charles Hoskinson, this Hydra layer enables a wide variety of activities, including rapid completion, microtransactions, and micro-gorging. Success in this solution will break down the years-long blockchain payment problem.
Oracles
Cardano aims to improve one of its strongest features: oracles. This is a key identity of the project, which is why numerous investors support it.
This technology fills in the blanks between on-chain and off-chain data, which is important in the economy of blockchain-supported businesses. Because it adds oracle capabilities to Ethereum smart contracts, Chainlink (LINK) serves as a solid example of oracle development and has the potential to increase ADA network adoption.
Other ways of adoption include cross-chain liquidity pools, atomic swaps, and prices determined through mutual agreement by the oracle data.
Cardano’s on-net design serves as a potential pioneer in the blockchain industry, which could result as mandatory for Web3 technology if it succeeds.
Make or Break for Cardano
Cardano will need to prove its worth to investors because it has been lagging behind its competition for more than a year already. Others have already begun releasing their new features, so now it is high time for Cardano to do the same soon.
