Cardano Chain Can Move Assets to 1,600 Users for Just $2.38 in Fees, Analysis Reveals

The transaction capabilities of the Cardano (ADA) network have once again sparked debate within its community.

Jaromir Tesar, a prominent Cardano supporter, recently highlighted that the network can facilitate asset transfers to a significant number of users within a single block. Specifically, Tesar noted that one Cardano block can transfer assets to up to 1,600 users for a remarkably low cost of just 5.16 ADA, which is approximately $2.38.

This claim surprised many, prompting a variety of reactions among Cardano enthusiasts.

#Cardano can transfer assets to 1,600 users within a single block, all for a fee of just 5.16 $ADA. https://t.co/nwtfYzsGJI

— Cardano YOD₳ (@JaromirTesar) September 25, 2024

Notably, the observation was initially made by Dedium—a decentralized GPU computing network on Cardano—and has elicited mixed responses from the community. Some members see this capability as beneficial for institutional transfers, while others express skepticism, drawing parallels to Ethereum’s ecosystem.

Reactions and Comparisons 

One commenter cited previous statements from Sebastien Guillemot, co-founder of Paima Studios, regarding transaction efficiency on Ethereum Layer 2 solutions.

It revealed that 186 swaps could occur in a single transaction with a fee of just $0.19. He pointed out that this efficiency leverages the security of the Ethereum mainnet without requiring additional tokens for fees.

Notably, in the post, Guillemot contrasted Ethereum layer-2’s transaction efficiency with that of Cardano, indicating that Cardano’s fees in USD were typically higher. He suggested that implementing scaling solutions, such as Cardano Layer 2, could substantially lower these fees.

Meanwhile, other members of the Cardano community believe that the network’s metrics should not be compared with competitors, emphasizing the distinct nature of Cardano’s infrastructure.

Some are anticipating that upcoming updates, including the implementation of zero-knowledge proofs after the Chang hard fork, will significantly increase the network’s transactions per second (TPS).

Blockchain Interoperability Breakthrough

In another noteworthy development, a Cardano developer known as Elraulito announced a significant breakthrough in blockchain interoperability. He showcased a seamless bridge between Bitcoin and Cardano applications.

The new smart contract on Plutus V3 allows Bitcoin wallets to interact directly with Cardano’s ecosystem, enabling users to manage ADA, transfer tokens, and stake without the need for additional wallets.

This integration caught the attention of Cardano’s founder, Charles Hoskinson, who expressed surprise at the smooth interaction between the two blockchain platforms.

Growth in Cardano’s Ecosystem 

Additionally, Cardano’s ecosystem has been experiencing steady growth, characterized by increased on-chain activity. Recent data from the Cardano Foundation showed a rise in wallet creation, transaction volumes, and native token support as of August. 

Transaction metrics reveal diverse usage, with 95.9 million transactions processed, reflecting a modest increase of 1.51% from the previous month.