Cardano (ADA) has been in a strong downturn over the last few months as the crypto market continues to plummet. The sixth-largest cryptocurrency by market capitalization has had a successful year, completing many mainnet upgrades.
First, in 2020, Cardano successfully converted to a Proof-of-Stake consensus, shortly after the D parameter reached “0,” marking block production’s full decentralization. Because the latter controls the majority of stake pools producing blocks on the network, the network transitioned from federate to community-based consensus.
The adoption of “Allegra,” followed by “Mary,” marked the start of a new era. These upgrades added additional features to the Cardano mainnet, culminating in “Alonzo,” which added smart contract functionality to the blockchain.
As developers and users rush in to construct and utilize the benefits of the UTXO model, this ecosystem has already seen a boom in projects. In this regard, community member ADA Whale revealed his top predictions for the Cardano network’s underlying coin, which might help the network’s underlying cryptocurrency bounce again.
Cardano could see a spike in the number of transactions and active addresses, according to ADA Whale. These fundamentals, according to the investor, might expand by a factor of five, resulting in a major wave of adoption in 2023.
“Cardano remains one of the most actively used networks. Scaling happens via different streams, first gradually to keep up with growth, exponentially in 2023.” says The Investor.
This new surge of interest in the network may result in the creation of other projects. According to the investors, the network could include over 250 decentralized applications, DeFi platforms, launchpads, and other features by the end of 2022. The Investor added;
“Cardano DeFi starts slowly but TVL >$10bn eoy. Dapp store with levels of certification goes live. Ease of use sees people replace the banking stack with Cardano DeFi. Digital Identity projects thrive connecting DeFi with the real world. UTXO DeFi will be different, and better.”
Cardano’s Potential in the Next Few Years
Cardano, in addition to its security, offers minimal fees, energy efficiency with a low carbon footprint, and has been used by enterprises and initiatives with a worldwide impact, according to ADA Whale. World Mobile, Singularity, and others are among them.
The aforementioned collaborations embed the ecosystem in a variety of sectors, including close ties to governments in developing economies. In future years, Cardano will expand its collaborations in order to give consumers an open, decentralized, and accessible network to manage and support a variety of essential services.
Meanwhile, the network is working on becoming more interoperable. Milkomeda, a Cardano second-layer solution with EVM compatibility, was discussed by ADA Whale. More users and developers will be able to use these types of solutions.