Cardano is a dead duck right now? but Cardano is ready to go because Alonzo Era is here. This means smart contracts, Defi transactions and dApps are about to brighten its road.
That’s why we see, even during these very tumultuous times, the price of ADA staying strong. Currently around 1.35 usd with big fundamental support for the price from buyers.
Firstly before we go over all the different types of projects that are launching and massive milestones for Cardano.
Over 1 million wallets. This isn’t the total amount of wallets that are holding Cardano or the total amount of holders. But specifically the amount of Cardano wallets that have been created.
When people create these, what they’re usually doing is staking ADA, which is obviously a great way to earn passive income if you are a long-term holder of ADA anyway.
We can also see now that almost 70 per cent of ADA worth approximately 34 billion at the time of this article is actually being staked. So that isn’t going anywhere that is being used to earn passive income currently, the rates on staking ADA are around, I think 5–6% per cent.
One million Cardano wallets
So if you are staking ADA in one of the native wallets, either Daedalus or Yoroi, you will be staking your ADA with those pools and earning that reward.
Even during the latest downturn when things were getting a little bit hairy, we saw over 6 800 new wallets created every day. And we can also see a graph of the daily growth in ADA wallets.
So this is on the uptrend not only is their growth, but it also seems to be exponential growth with the percentage growth over time also going up so.
It’s obviously a big step for Cardano to have one million wallets. This, I’m sure, will grow over time as the Alonzo mainnet comes. We get smart contracts, and a lot more people actually want to use ADA. Because of the utility of the blockchain.
Of course, Cardano has so much more than just staking. Obviously, now we are waiting for Alonzo. Alonzo will bring us smart contracts, and smart contracts will bring us a whole host of projects.
And this is really what people are looking forward to.
Cardano Alonzo Era
Coming through to the Alonzo era. When is it coming? It is coming very soon, and I would put maybe September fully lunch. But of course, things can change and will change.
Even Charles Hoskinson saying this is a tentative date. There are a lot of bugs to be fixed and stability to be improved, of course. But, for long-term holders of Cardano, whether it comes in July, August or September.
What’s really important is that it comes and delivers on the promises of Cardano, which is a low-cost blockchain. But you can see what Cardano is doing with Alonzo and the era of all of these new dapps that are going to be built.
According to Charles Hoskinson, an interview said; lots of integrations left to do as well. He suggested that the Alonzo mainnet is not necessarily coming in 90 days.
Me personally, I don’t really care when it comes. But in the short term, of course, if people are expecting July august and it is a bit late. You may see some selling in the price of Cardano some cooling off. But for long-term holders, it’s not really an issue.
The next 90 days then are going to be important, and Charles Hoskinson actually released a video on youtube about the next 90 days. So there is a lot going on with Cardano. And that is why we see such massive support in the price right.
Now, even with the current dip, we see a rebound in many cryptocurrencies, and Cardano is taking advantage of this.
Cardan ADA $10m inflows
We’re gonna move on into the institutional inflows into Cardano and all the potential dapps that you may want to look out for. They’re going to get built on Cardano. And really fill out the blockchain.
We now have the basis of the blockchain. What we want now is all of the adapts and services to be built on top and really fill out the value of Cardano.
Right now, with a market cap of 41 billion. So a lot of this growth is priced in already. But of course, longer-term. For me personally, it still looks bullish. You have a bank like HSBC, just one bank with a market cap of 90 billion.
I believe there to be a lot of value potentially in the future as well. Also, I thought I’d highlight an interesting piece of news: Cardano sees its largest-ever weekly inflows from institutional managers.
A very interesting piece of data here during the recent dump. We saw huge outflows from Bitcoin and even Ethereum. But conversely, Cardano actually saw inflows which I thought was very interesting.
We can see institutional investment managers bought around 10 million dollars worth of ADA products.
And also, Cardano investment funds attracted more capital than any other digital asset. Almost coincidentally as well, the number of outflows we saw from Ethereum total 12.6 million and then 10 million going into Cardano.
I’m not saying that every million that came out of Ethereum went into Cardano, but it seems like those two figures are very related overall. We also see inflows in Polkadot funds as well.
And this could potentially be because of the proof-of-stake nature of Cardano and Polkadot. Whereas Ethereum is still on proof of work moving over to proof of stake, and there’s a lot of fun around energy and green energy at the moment.
And how much energy proof of work actually takes versus proof of stake. Ten million dollars in the big scheme of things is not a lot of money, but it is interesting to see how the money flows into proof-of-stake blockchains.
Hydra
Coming on to the first project that you really want to keep an eye on though it is a hydra. Hydra is actually a protocol being developed by Cardano, and it really could increase the scalability of the Cardano blockchain.
As we know, Cardano is actually much lower cost than most other blockchains. However, not only is it lower cost, but the fee structure is very predictable as well, and that is something that Ethereum really struggles. And that is why they are trying to implement different protocols and different upgrades.
Which they are doing, and you’ve seen a huge growth in Ethereum after the eip1559 upgrade. But even though Cardano is built to be low cost and also scalable. It still cannot compete with payments networks such as visa.
The Visa network processes an average of 150 million transactions every day or around 2 000 transactions per second. That is way more than Cardano can do.
But Cardano is different, of course, it’s decentralized, and decentralization has obviously downsides when it comes to scalability and the number of transactions per second that can be processed.
With hydra, it looks like Cardano is tackling this scalability. As we can see, Ouroboros hydra breaks new ground in an ouroboros of state scalability with hydra Cardano can become the alternative to current fiat money. Hydra is the second layer solution on top of Cardano, where proof of state consensus is used.
So as we’ve seen with Ethereum and many different layer 2 layer 3 solutions Cardano is working on this in conjunction with the launch of the layer 1 blockchain.
Hydra then could create a solution where multiple different payment networks can be built on top of Cardano as the settlement layer.
Theoretically, with hydra and a thousand staple Cardano could theoretically be able to scale up to 1 million transactions per second.
And the finality of those transactions will be very fast .with a thousand transactions per second, you could potentially have multiples of the visa payments network on top of Cardano as the layer one blockchain.
Cardstarter
Not so much a dap or project built on Cardano but incredibly exciting if we think that Cardano could be a settlement layer and a massive financial network over the coming years.
Cardstarter
Cardstarter is a project accelerator for Cardano projects. It’s completely decentralized actually being built on Ethereum right now. This allows access to very early stage Cardano projects and gives the opportunity for those projects to get funding for development.
Investors can also potentially get very early access to these projects as well. And as the Cardano ecosystem grows, more users flood in, and more projects are launched. So I’m sure a lot of projects will be launched on cardstarter.
The way that cardstarter works are that you have to own the card tokens again. This is an Ethereum based token. Mainly because Cardano obviously doesn’t have this functionality right now, which is to be launched in the future.
Cardstarter is listed, and you can get the coins on an Ethereum exchange like Uniswap. Then if you are a holder of card tokens, you actually get the ability to have investments and holdings in various early-stage projects that do launch on cardstarter.
What this shows us is that Cardano is attracting projects, and it’s attracting developers that want to develop dapps for Cardano. Investors, of course, do want a piece of potential early-stage projects getting in at the IDO stage.
A few projects have actually already launched on cardstarter, including Dfinity. This looks to be a decentralized exchange to trade foreign exchange and stable coins on the Cardano network.
And some other projects, including Gerowallet, which have successfully completed their videos. Of course, this cannot be investment advice, but it is interesting to see the number of projects. Dex’s and investment vehicles are flooding into the Cardano ecosystem.
Gerowallet
The next project than talking about Gerowallet, is itself. Your master key to Defi. There is absolutely no shortage of crypto wallets out there, of course, we have metamask exodus wallet, even your royal native Cardano wallet. So what makes gero so special.
Unlike most other wallets like Metamask, Gero’s actually built on Cardano and will use Cardano’s interoperability. That is so special because it has a massive benefit to us.
According to Gerowallet effortlessly buy store send and receive any asset. Of course,e Cardano is interoperable between blockchains. So that is really interesting to me to have different tokens all in one wallet that you can swap easily.
And in a decentralized way, effortless swapping between blockchains and between tokens from different blockchains sounds very beneficial.
Especially for more seasoned investors who do have Cardano, possiblyPolkadott and Ethereum tokens, and especially a lot of early Ethereum investors that still have a lot of value locked up in Ethereum based tokens that may want to use some of that take it out and invest in other projects and other blockchains.
It could potentially create a lot of value. Gerowallet is built on Cardano and we have interchain and multi-chain compatibility with the wallet. Gerowallet is a project you can invest in, and for right now, it is actually only available on uniswap.
You can use Ethereum-based tokens to go and swap some Gero tokens one Ethereum gets you around 6650 gero coins. One thing that slightly worries me is tokenomics.
There is a lot of tokens for the private token sale and the team and developers as well. Are they going to all dump their tokens on the market at one specific point.
That wouldn’t be great for the price short term if they did that. But an interesting project nonetheless allowing for cross-chain swaps we can see the road map.
There is still some development needed. We’re looking at q3 2021 for cross-chain swaps and staking. And also integration into the Cardano blockchain.
Of course, this will have to wait for the Alonzo hard fork and smart contracts to actually be launched on the main net before this wallet can actually take advantage of all of that.
Cardax
Cardax is going to be the first dex on Cardano. Something that really bugs me is that being a dex, they named the project Cardax. I don’t know why they didn’t just call it cardex. However, Cardax has been developing for a while, and they are ready to launch this dex as soon as the Alonzo main net goes live.
Cardax is going to be a uniswap type dex. So think swaps and exchanges but for native ADA tokens. As we know, Cardano went through the Shelley hard fork earlier this year which allowed for native tokens to be issued on Cardano itself.
So just like Ethereum, that has many other tokens like us dollar tether. Uniswap polygon chain-link Cardano will have thousands of tokens issued on the Cardano blockchain, which people can go and swap in a decentralized way on something like Cardax.
Cardax is not the only decentralized exchange waiting to launch on Cardano, though. In fact, Charles Hoskinson himself reposted.
We can see the current Cardano ecosystem and what is being built. In terms of decentralized exchanges and liquidity, there are many different providers here. Sundayswap is obviously going to be a Pancakeswap or Sushiswap type of dex.
Cardax looking to be more of a uniswap type deal. Many other projects though NFTS are going to be huge on Cardano, and many providers are looking to provide this service for us. We also have stable coins here. And I would fully expect u.s dollar tether to launch on Cardano as well.
Payment systems, including Coti very excited about a potential celsius wallet launch. Then Ido platforms like I’ve discussed with cardstarter and a couple of other platforms as well.
Oracles, I fully expect chainlink, the largest oracle, to possibly move over or provide some sort of functionality with Cardano.