Altcoin prices are on the rise, with over 200 million Cardano tokens seized by whales. Cardano investors have purchased 217.2 million ADA since the start of 2023.
This altcoin has become the whales’ choice
According to the on-chain analytics portal Santiment, major Cardano investors have purchased 217.2 million ADA since the start of 2023. This can certainly be considered a positive development, but in the previous two months of last year, the same whales, whose balances ranged from 1 million to 100 million ADA, sold twice as many Cardano tokens, or 568.4 million ADA, to the market.
The price of the Cardano token has therefore increased by more than 10% since the beginning of January, falling from a two-year low. But in the previous two months, it had lost more than 44% since the beginning of November as a result of the massive sell-off that brought it to these lows. Interestingly, during the extreme fall, the price of ADA aligned with the Binance listing price that took place in April 2018. The next big test for Cardano token price could be $0.33 per ADA level, all else being equal, and breaking it could open the way for another strong resistance in the $0.4 area. cryptocoin.comAs we mentioned, ADA is instantly traded at $0.26.
Cardano will release new versions
Expectations for Cardano (ADA) are high for 2023. In this new year, the Ethereum (ETH) competitor may fulfill some of the promises made between 2021 and 2022 in the next 12 months that have not been fulfilled by the smart contract blockchain. One such promise is the arrival of non-synthetic stablecoins. A stable presence is one of the highest expectations of ADA investors, if not new, as it could help Cardano grow significantly in decentralized finance (DeFi). Despite being one of the biggest problems seen for several Layer-1 projects in 2022, keeping the anchor of a stablecoin is not an easy task, so Ethereum killer investors are more optimistic than pessimistic about this launch, which should happen earlier this year.
Two stablecoins are expected on the Cardano network for the first quarter of 2023. The first is the centralized stablecoin USDA, which will be a US dollar-backed asset. It will use fiat assets to maintain its parity and continue to enjoy Cardano benefits such as network efficiency. Another anticipated stablecoin is Djed, an altcoin developed in partnership with Coti. The stablecoin will allow Cardano to be pegged to the dollar through its smart contract design. Djed will have a base currency reserve to mine to protect this anchor and will burn other stable assets and reserve currencies to contain volatility.
Hydra, Layer-2 scalability solution
In 2022, Cardano took a big step towards network scalability through the Vasil hard fork. However, previous blockchains such as Bitcoin (BTC) and Ethereum have shown that a scalable network is a constant concern for cryptocurrencies looking to be used in everyday life. Cardano has shown interest in other developments in this area. One proof of this is the preparation for Hydra, a Layer-2 scalability solution. Hydra aims to increase processing speed thanks to low latency and high throughput without giving up low transfer speeds.
The first member of the family is Hydra Head. It will allow developers to add complex and custom protocols on top of Cardano. According to Charles Hoskinson, this Hydra layer can facilitate other things like fast finishing, microtransactions and microclogging. This must be one of the most important developments for the crypto team. Ultimately, the whitepaper was published in March 2020.
Rounding out the prospect list are Oracles on the Cardano blockchain. This method is especially important as it manages to connect on-chain and off-chain data. A suitable example of oracle growth is through Chainlink (LINK), which has managed to introduce this method to smart contracts on Ethereum and helps them reach their true potential, and can also help the ADA network gain market acceptance.
Examples of applications for Oracles are atomic swaps, cross-chain liquidity pools, and pricing decided by mutually agreed upon oracle data. With the help of this key area for the blockchain industry, Cardano also qualifies as a major Ethereum competitor. In 2022, the altcoin market met Charli3, the decentralized oracle of Cardano. Unlike legacy oracle solutions, ADA’s online design avoids flexibility and scaling issues, and that’s exactly what is expected of Cardano’s next prophecies in 2023.