- 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). Cardano (ADA), one of the most popular altcoins, was surrounded with hype – especially in 2021 when it rose from $0.32 to more than $3 (its latest all-time high) in just a few months.
However, after its peak, the price died down, much like its other competitors. While its price depreciation may not have been as dreadful as the rest in the market, Cardano was quiet in 2022.
The project is looking to bounce back this year with three solutions: new stablecoins in the network, a new Layer-2 scalability solution, and updated oracles.
What was speculated as a faster and smarter choice than Ethereum, Cardano may soon make big positive headlines if it manages to keep its promises. 2023 will likely be a breakthrough year for Cardano (ADA). Ethereum may finally realize its vision of an innovative contract blockchain by the end of the year.
New Stablecoins
One of the investors’ anticipations is that a stable asset might benefit Cardano’s development in decentralized finance. This asset comes from a nonsynthetic stablecoin that remains strong and backed up securely, unlike Terra’s failed UST stablecoin.
Although the stablecoin peg was seen as a significant issue for numerous Layer 1 projects last year, ADA investors look forward to the launch, which is scheduled within the first quarter of 2023.
The Cardano network is expected to be home to not one but two stablecoins:
- USDA
- Djed
USDA is a controlled digital currency backed by the US dollar. The value will be maintained using fiat currency but will continue utilizing 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 keeps its peg by burning 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
Initially 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 with the implementation of the Vasil hard fork last year but has fully pushed through with Hydra at the latest announcement.
While established blockchains like Bitcoin and Ethereum proved that a scalable network is an ongoing problem for cryptocurrencies hoping to be used in the real world, Hydra seeks to solve it with streamlined processes to make transactions in everyday life easier.
The Hydra Head, its first member in the scaling, will give access to protocols that may be built over Cardano that are both complex and unique.
According to Cardano founder Charles Hoskinson, this Hydra layer enables various activities, including rapid completion, microtransactions, and micro-gorging. The Cardano team sees this as the most crucial step because success in this solution means it will break down the years-long problem of blockchain payments.
Oracles
Lastly, Cardano aims to improve one of its most vital features: oracles. This is one of the project’s central identities and why many investors back it up.
This technology fills in the blanks between on-chain and off-chain data, which is critical in the economy of blockchain-supported businesses. Because it adds oracle capabilities to Ethereum smart contracts, Chainlink (LINK) is a solid example of oracle development and can potentially increase ADA network adoption.
Other ways of adoption include cross-chain liquidity pools, atomic swaps, and prices that the oracle data is mutually decided upon. Cardano’s on-net design is a potential pioneer in the blockchain industry, which could become 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. Others have already begun releasing their new features, so it is high time for Cardano to do the same soon.
