The year 2022 has passed and is considered the year that the market Cryptocurrency had to face severe turmoil Whether it’s Terra/Three Arrows Capital/FTX’s Black Swan event and looking at Project Cardano, what hidden “Hidden Gem” is there? And wait for the reveal date in 2023 or not?
As we all know that The past is paving the way to the present. And as a fledgling blockchain project, Cardano has stood the test of the world’s bull and bear markets. Cryptocurrency in 2022
Despite the turmoil and collapse of many giants, Cardano remained steadfast and continued to withstand the test of bull and bear markets.
Looking to 2023, Cardano has compiled possible milestones and trends along its development path. and explore the milestone years of ecosystem development. To see the future of this veteran blockchain project.
Vasil hard fork upgrades
Let’s start with the biggest milestones first. On the development path of Cardano in 2022 is Vasil hard fork By the day of September 23, without a doubt.
This hard fork upgrade is a major update to Cardano’s smart contract language, creating a complete transition from a traditional public blockchain to a public smart contract blockchain, laying the groundwork for the growth of DApps. New to new users, and also Cardano’s TVL.
The main upgrade content includes:
- CIP 31 introduces a new Input to access data stored on the Cardano Blockchain, enabling anyone to search results without processing.
- CIP-32 provides a solution that allows data to be attached to the output instead of just hashing the data. This makes it easier for users to communicate data values with each other.
- CIP-33 introduces the ability to reference scripts without including scripts in every transaction. This greatly reduces the impact of scripts on transaction size.
In summary, the Vasil Hard Fork upgrade aims to make Cardano Blockchain do more and better. It significantly improves network speed and scalability, enabling more complex DApps with a better user experience. It also creates a true Smart Contract Platform, opening up a storytelling space. matter for Cardano’s “smart contract platform” in the second half of the year and lays the groundwork for the growth of new DApps, new users, and Cardano’s TVL ecosystem.
The DApp ecosystem matrix is taking shape.
Since Cardano entered the era of smart contracts in September last year, The infrastructure of the Cardano ecosystem has been gradually improving over the past several months. At the same time, the attention and capital flow in the market has been steadily attracted, and the vision of building a smart contract platform is gradually being revealed.
As of now, almost half a year has passed, Cardano is still building an ecosystem model dominated by DEX and NFT projects. Different types of applications such as DEX, Launchpad, Stablecoin and other DeFi fields are emerging as well. Cardano’s DApp ecosystem matrix begins to take shape.
Indigo Protocol: A Synthetic Asset Protocol
Since 2021, with the rapid advancement of the Ethereum DeFi concept, the path of derivatives Derivatives such as futures, options, synthetic assets, etc. used to be viewed as the most promising sectors of the future. However, two years later, the efficiency of tracking derivatives is only moderate.
However, 2021, with the growth of the Terra ecosystem, is showing.Advantages of High Performance Public Networks in Synthetic Asset Paths These are inherent advantages for Cardano:
On the one hand, with the performance and cost advantages of Cardano, many use cases limited by Ethereum mainnet can be gradually implemented.
On the other hand, Cardano’s total market capitalization still tops $13.7 billion (CoinGecko data as of Feb. 22), behind Bitcoin, Ethereum, BNB, and XRP in the non-stablecoin ranks. which meansAs an underlying asset, the ADA can provide a sufficient amount of support for the synthetic asset ecosystem.
In November 2021, the Indigo Protocol, the synthetic asset protocol in the Cardano ecosystem, launched Stablecoin iUSD, which allows users to generate stablecoins by stake ADA.
And in the past month, the Indigo Protocol has grown by as much as 50%, making it Cardano’s third largest DeFi protocol in terms of TVL ($20 million). The synthetic asset competition in the Cardano ecosystem is intensifying. And it’s worth keeping an eye on if it releases another “DeFi Summer” for Cardano in the market.
Djed collateralized stablecoin
Stablecoins have entered a new stage of development after experiencing massive growth in 2020 and 2021 and proving their stability in 2022. In the future, stablecoins will play an even more important role in exploiting the world of cryptocurrencies. ripto as a cross-border payment
As a “kingdom,” Cardano wants to stay ahead of the competition in the public blockchain ecosystem. Strengthening the stablecoin matrix is an inevitable factor.
Djed as a Highly Guaranteed Stablecoin which is based on the US dollar in the Cardano ecosystem, takes on this important role. It was developed with blockchain company Coti and Cardano’s Lead Input Output Developer for over a year. And can create a margin ratio of 400% to 800% using ADA.
Currently, Djed officially launched on Mainnet in January and is supported by MinSwap, Wingriders and MuesliSwap. It is also gradually integrating with other Cardano ecosystem projects.
These moves show that Djed has created a series of scenarios (Senario) focused on the demand for stablecoins from the start. It has created a new path of “stablecoin + scenarios” for the entire Cardano ecosystem.
If Cardano can gradually build a self-contained ecosystem using ADA (e.g. DEX, derivatives) and ultimately focus on the core scenarios of the ecosystem to meet demand for stablecoins in the long run, it will increase the strength of the cryptocurrency. step by step ecosystem And finally it will progress to a relatively good and stable positive feedback cycle.
USDA Stablecoin is here
Furthermore, the recent events of BUSD and other stablecoins indicate that the 2023 stablecoin competition may face normalcy. “Strict regulation” where compliance dominates everything.
EMURGO, Cardano’s commercial incubator, has also prepared for this rigorous plan to launch a fully regulated hyper-guaranteed stablecoin, USDA, fully backed by the currency. according to the law in early 2023
Overall, according to the map of the future ecosystem previously published by the Cardano community, there are project teams deployed in multiple sectors such as Lending, Wallet, and NFT. The angles deserve special attention in 2023.
Cardano’s NFT continues to accelerate.
One notable trend in the Cardano ecosystem in 2022 is the rapid growth of NFT trails. In September 2022, after the Vasil upgrade, Cardano’s NFT trading volume topped $19 million, trailing only Ethereum and Solana. Third largest NFT network
According to the latest CryptoSlam data, Cardano activity has increased significantly since the massive Vasil upgrade in September. The average daily NFT trading volume has been around $250,000 in recent times.
At the micro level, there is clearly a growing trend of Cardano’s network-only NFT projects. The Clay Nation NFT series is the most common example: as Clay’s animation arts and culture projects. The Cardano-based video that Snoop Dog acquired has gained a lot of attention since the release of the associated MV produced by Snoop Dog and his son Champ Medici.
At the same time, the top three NFT series on Cardano have cumulative trading volumes of more than $20 million, providing a solid foundation for maintaining high-quality and popular IPs.
The most important aspect of a successful NFT project is the awareness of the brand and the community it creates.
With community consciousness in place in 2022, will Cardano’s NFT group gradually build a strong community with an open culture? Or will it be possible to create an IP with huge commercial value like BAYC in 2023?
Potential opportunities and dividends are worth paying attention to over the long term.
Provide industry-standard metrics for crypto decentralization.
Additionally, in terms of crypto industry standard metrics, Input Output Global (IOG), one of the creators of Cardano, has partnered with the University of Edinburgh in the UK to develop the first “Edinburgh Decentralization Index” (EDI) for blockchain. Industry The index aims to measure the effectiveness of blockchain decentralization. and to increase transparency and inclusion in all decentralized technology fields.
The index assesses the level of decentralization of blockchains based on different levels including API, consensus system, hardware, software, network, tokennomics, management, and verifier geographic location. must makes no doubt that With these strategic moves, Cardano contributes to the crypto industry standard.
The crash of Terra in May 2022 had a profound impact on the path of stablecoins, especially algorithmic stablecoins. Increasingly centralized (CEX), market funds begin to migrate to network locations. This underscores the importance of network activity.
Throughout these crises, Cardano has remained committed to improving himself and his vision of “Make the world a better place for everyone”
Because even though the road ahead is long and challenging But success is inevitable.
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