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Cardano’s founder, Charles Hoskinson, dispels scalability concerns about the Hydra upgrade, emphasizing its robustness and unique transaction system.
ADA’s price remains relatively stagnant but increased staking and rising network demand hint at potential for future growth.
In a recent video update, Charles Hoskinson, the creator of Cardano, directly addressed concerns surrounding the Hydra upgrade’s scalability. This development aims to enhance transaction speeds on the Cardano blockchain, and misconceptions have arisen regarding its capabilities. Hoskinson clarified the situation, shedding light on the unique nature of Cardano’s transaction system and emphasizing the project’s promising future.
Charles Hoskinson tackled misconceptions by referencing data from eutxo.com. He explained that transactions on Cardano differ fundamentally from many other blockchain networks. A single transaction can contain numerous outputs, with one examined example containing a staggering 384 outputs within a single block.
Hoskinson emphasized that Cardano operates as a transaction-per-transaction system, where each output can represent intricate elements beyond raw value transfers, such as scripts and proofs. To underscore Cardano’s throughput capacity, he shared a chart depicting 1,000 transactions per second (TPS), demonstrating Hydra’s robustness and dispelling the misinformation.
Evolution of Hydra’s role
The Hydra scaling tool’s role has evolved. Rather than merely maximizing TPS, it focuses on creating middleware that enables developers to construct advanced decentralized applications (dApps) on the main Cardano chain. This shift highlights Cardano’s commitment to providing a robust ecosystem for developers and users alike.
Hoskinson urged the Cardano community to remain vigilant and fact-check any false information concerning Cardano’s ambitious layer-2 scalability solution. He stressed that spreading unverified claims can harm the hard work of the project’s contributors and negatively impact its reputation.
He stated, “Every time a lie is said, it takes ten times as much effort to undo that in people’s memory. So, when people run around and say Hydra’s failed, we lied about Hydra, there’s no way to achieve any of these performance claims, then what they’re doing is they’re taking the hard work of dozens of people and everybody building on it…it’s not okay, and it’s not fair, and it has to stop.”
Hoskinson reaffirmed Cardano’s credibility, citing rigorous research, peer-reviewed foundations, and a global network of contributors as strengths. He emphasized the project’s bright future and continuous efforts to expand the ecosystem and develop cutting-edge solutions.
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Price and performance
Despite the notable advancements within the Cardano ecosystem, its native cryptocurrency, ADA, has not experienced a significant increase in value. ADA is trading at 91.50%, down from its all-time high in September 2021. While the price performance may seem lackluster, Cardano’s growth over the past year suggests promising prospects for the future.
Staking activity on the rise
Cardano’s recent price activity has seen ADA approach the $0.30 mark as network participants intensify their activities. On-chain indicators indicate increased ADA staking as a driving force behind the price surge. The staking metric reveals that ADA staking has risen from 62.74% to 63.5% between September 27 and October 5. This 0.8% increase in ADA coins staked signifies a positive response to Cardano’s recent development efforts.
Higher staking levels typically positively influence a native coin’s price, as it enhances network security and reduces market supply. Notably, the current level of ADA staking, at 63.5%, represents the highest activity since June 22, 2023. With more coins temporarily locked away from circulation, ADA’s price could surge beyond $0.30 if market sentiment turns bullish.
Increased network demand
Further supporting a bullish outlook, on-chain data indicates increased network demand for Cardano. The Cardano network saw a 4-month peak on October 2, with 3,860 new wallet addresses created. This influx of new participants into the Cardano ecosystem has continued throughout the month, resulting in 11,383 new wallets created in the past week alone.
The number of daily wallet creations is a barometer for the network’s appeal to new users. A notable influx of newcomers often increases market demand for the native coin. This trend has pushed ADA’s price above the $0.25 resistance level. If Cardano’s staking activity remains strong, the subsequent surge in market demand could potentially propel ADA to reclaim the $0.30 mark.
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