Following a period of strong market performance that occurred before Bitcoin’s most recent decline, Cardano (ADA) and the potential of ADA are once again at the forefront of the discourse in the cryptocurrency space.
Notably, Cardano had a higher trading volume of $6.5 billion than its rival Ethereum, which had a volume of $5.8 billion when the adjusted volume was taken into consideration, according to a graphic tweeted by Cardano Daily on January 20.
Interestingly, despite having a bigger volume, ADA had 568 times cheaper fees than its competitor, costing just $76,500 for a total of $6.5 billion in transactions. In comparison, ETH charges $38.6 million significantly more for fewer transactions.
In response to the figures sourced from crypto data platform Messari, Cardano founder Charles Hoskinson referred to the Basho era of ADA, he said:
“And remember, we are just getting started with Basho….”
Basho, which Hoskinson is referring to, is a period of optimization in which the network’s scalability and interoperability are improved to a greater extent. Instead of focusing on decentralization and new features, the Basho development cycle is focused on enhancing the underlying performance of the Cardano network in order to better support the growth and acceptance of apps with high transaction volumes.
How will Cardano scale?
Recently Finbold released a report on the 11 ways Cardano is planning to scale in 2022. It highlighted a component of scaling: the increase in block size, which has recently been raised from 8KB to 72KB to accommodate more transactions.
In a blog post, Cardano’s parent firm, Input-Output, detailed further future on-chain and off-chain technologies that would aid in the scaling of the cryptocurrency in 2022.
For example, the company announced pipelining, a technology that would enhance block propagation speeds. Cardano claimed that its objective is to transmit at least 95% of peers within five seconds.
On top of this, Cardano has planned enhancements to its smart contracts platform, Plutus. As part of smart contract optimization, the Plutus script will be improved by concentrating on the efficient use of the EUTXO model. Notably, the capacity to execute smart contracts on the Cardano blockchain is already seeing significant growth.
According to Finbold’s report, the number of smart contracts based on Plutus is gradually increasing standing at 986 smart contacts at the time of publication, and is on the verge of reaching the 1,000 mark.
Currently, Cardano is trading at $1.24, down 8.25% in the last 24 hours and 2.55% across the previous seven days, according to CoinMarketCap data.
Notably, the ‘Ethereum Killer’ was trading as high as $1.41 until Bitcoin’s decline hit the whole cryptocurrency market; presently, the overall market value of ADA is $41.5 billion, with a trading volume of $2.88 billion in the previous 24 hours.