Cardano is gaining a lot of traction. Staking the platform’s own ADA coin is becoming increasingly popular, and the first decentralized trading venue based on the Cardano blockchain is nearing completion.
Another important milestone has been reached. Cardano (ADA) recently reached a milestone of 20 million transactions. The decentralized blockchain platform’s in-house cryptocurrency has now broken the next barrier. That’s because the network reached a million staking accounts on December 5. As a result, the Cardano community is preparing for the future DeFi period.
Cardano ranks second among the largest proof-of-stake blockchains in the process, with a market valuation of around $47.5 billion. Only Solana is more well-known in the market. Proof of stake, by the way, is a new consensus process that was created as a low-energy alternative to Bitcoin’s proof-of-work system. As a result, creating a new block in Proof of Stake no longer necessitates hardware-intensive mining. Instead, users within place crypto stakes that decide the likelihood that a staker will be allowed to build the next block.
ADA reserves are staked to the tune of 72 percent
A study at pool.pm also reveals that Cardano’s staking cycle involves 72 percent of all ADA reserves. That’s a little more than $34 billion. But why is it that ADA staking is so popular?
When Cardano debuted smart contracts in September, the platform’s popularity skyrocketed. The capacity to construct dApps for the blockchain has steadily expanded the number of stakers. Cardano also benefits from Ethereum Blockchain’s high transaction fees.
Cardano provides the option of easily managing staking from its own wallet. At any point, assets set aside for staking can be withdrawn. This is yet another distinction between Ethereum and other cryptocurrencies. Validators must put their funds on hold until Ethereum 2.0 is released.
Cardano’s first DeFi app, SundaeSwap, has launched
Meanwhile, there is likely another reason for the rising interest in Cardano. This is because the first decentralized trading mechanism for the blockchain platform will be available soon. SundaeSwap, an AMM protocol, launched a testnet on December 5. These protocols, which are based on smart contracts, are essential for DeFi transactions to take place and, in some ways, operate as an intermediary.
Transactions with test tokens are permitted on the testnet. The test’s developers have been notified that bug reports are now available. The SundaeSwap launch will also test the network’s capacity constraints, according to the Cardano team.
All of this suggests that the ADA exchange rate should be closely monitored. The currency has lost about 30% of its worth in the last year, but no comment to the upcoming SundaeSwap launch has been received.