Over the past month, the number of addresses in Cardano has increased by 100 thousand, and the number of blockchain-based projects under development has almost doubled to 900. Is there a chance for Cardano to return to the TOP 3 of the rating?
In September 2021, the Alonzo hard fork added support for smart contracts. What should have led to the triumph of the network turned into a failure – overloads led to significant transaction delays. The coin rushed down, and the capitalization of the network collapsed from $ 100 billion to the current $32 billion.
The first (Cardano-based) decentralized exchange Minswap came under fire. A number of users decided that the network is simply not able to process more than 1 transaction per block. However, Charles Hoskinson categorically denied this accusation.
After Minswap, there were other attempts to launch an effective decentralized exchange.
So, SundaeSwap referred to the “unsuccessful experiment” of the predecessor and promised to take into account their mistakes. They presented their DEX at the end of January, but faced similar delays. Cardano network load jumped to 93%.
However, Charles Hoskinson is not discouraged, promising a phenomenal increase in interest in Cardano in the DeFi sector after the June Vasil hard fork. The update is designed to significantly improve network performance, in particular, diffusion conveyor processing will be added. According to Hoskinson, already in 2022 Cardano will reach the Solana level in terms of transaction processing speed.
These are very bold statements, considering less than a dozen dApps and only $222 million of blocked funds (TVL) in DeFi. Solana, which Hoskinson is equal to, ranks fifth in this ranking with $4.7 billion.
The number of announced projects in Cardano is growing by leaps and bounds, including due to the active work of the investment fund. However, partners are in no hurry with the release, for fear of getting burned about the low network bandwidth. If the improvements planned in 2022 can radically change the situation, Cardano will have a chance to return to the TOP 3. In the meantime, the situation for investors is not developing in the best way.