A Cardano’s decentralized apps (dApps) insights provider recently tweeted about the the surge in transactions on Cardano dApps. The price of Cardano (ADA) has been in a bearish trend with most cryptocurrencies are also following the downtrend.
According to the tweet, the transactions on Cardano DeFi apps spiked to 250K per epoch (an epoch on Cardano at present amounts to 5-days) from 160K transactions during the previous epoch.
Moreover, the platform also shared a screenshot that demonstrates the results of the best-performing crypto exchanges and liquidity protocols on the Cardano network. These include Sundaeswap (SUNDAE), Minswap (MIN), MuesliSwap (MILK), Wingriders (WRT), and Liqwid Finance (LQ). All these platforms have reported significant rise in activity in recent weeks.
Cardano blockchain uses a proof-of-stake consensus mechanism that allows its users to participate in the network. They also earn rewards by staking ADA tokens. Additionally, the blockchain gave a platform to develop more scalable and sustainable solutions for dApps.
The prominent developer Sebastien Guillemot shared a tweet in which he noted about the capacity of Cardano network. As he wrote, “there is no Cardano node that implements transaction prioritization, which means that transactions are processed in a first-come-first-serve model. So if we hit 100% load, your transactions will get put in a queue with everybody else.”
Guillemot also added that “there are other more creative ways to improve scalability on Cardano, such as dApps & wallets implementing better UTXO selection algorithms.” He also gave details about different strategies to further scale the Cardano network. This includes block sizes, and promotes more dApps to migrate to the Plutus V2 smart contract platform. This clearly showed that the network has reached its maximum capacity.
Cardano ($ADA) Price Analysis
According to the data sourced from Tradingview, the price of ADA is trading at $0.3654. The weekly price analysis shows ADA dropped almost 5%. Meanwhile it has noted almost 50% increase in its year-to-date price analysis. In recent one-day, the price of ADA dropped from its 100-day EMA.
As shown in the above chart, Cardano price is trading downward. The RSI of ADA is also heading toward the downward but quite far from the oversold zone. In the last 7-days, the price of ADA was high at $0.3965 while it dropped to $0.3586. Earlier in September 2021, ADA noted all-time high at $3.10. From its all-time high, ADA dropped more than 80%.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/09/dapps-transactions-soared-on-cardano-network-ada-price-bearish/