Hoskinson believes that in order for stakers to remain profitable, it is essential to scale underlying transactions on the Cardano network, which has a fixed supply of ADA coins.
The developers of the Cardano network are currently working on layer-two scaling solutions to enhance its web3 ecosystem.
Cardano (ADA), a prominent layer-one (L1) blockchain with over $400 million in Total Value Locked (TVL), is determined to surpass Ethereum (ETH) as the leading web3 hub. Though Cardano lags behind in the meme coin industry, it has successfully democratized scalable smart contracts.
As reported by Crypto News Flash, the Cardano network now hosts a fiat-backed stablecoin called USDM. This expansion provides Cardano network users with more options in the stablecoin industry, including the DJED algorithmic stablecoin with a TVL of approximately $20 million.
Ensuring Future Sustainability for the Cardano Network
To remain competitive in the vast cryptocurrency market, the Cardano community has been discussing necessary developments for a sustainable future. Charles Hoskinson, the founder of Cardano, believes that the ADA ecosystem needs to achieve three key objectives to ensure sustainable adoption.
Firstly, decentralized governance must operate smoothly. The Cardano network utilizes the proof-of-stake (PoS) consensus mechanism, with approximately 22 billion ADA already staked.
Hoskinson emphasized the need to streamline treasury operations, which are used to distribute staking rewards. Additionally, he stated that the Cardano partnerchains need to be fully functional.
“It’s axiomatic. Of course, all cryptocurrencies need more transactions. That’s the purpose of a blockchain. The most vital things we can do are get decentralization governance running, the treasury operational, and partnerchains running” – Charles Hoskinson
Patrick Tobler, CEO of NMKR wallet, previously highlighted the unsustainability of the staking program due to ADA’s tokenomics, which have a fixed maximum supply of 45 billion, and the current daily transaction volume of around 60k. Tobler praised German-based crypto wallets, particularly eternl wallet, Nami wallet, and NMKR, for facilitating about 2 percent of all Cardano transactions.
Fun Fact: NMKR-owned wallets account for over 1.3 million transactions, meaning almost 2% of all transactions come from us. If you add @eternlwallet & @NamiWallet, we can confidently say that a significant percentage of Cardano transactions originate from Germany
ADA Price Targets All-Time High (ATH)
Cardano’s price against the US dollar suggests an impending bull run after successfully retesting a macro bullish breakout earlier this year. The mid-cap altcoin, with a fully diluted valuation of around $28 billion, remains committed to revolutionizing the web3 industry for positive global change.
Cardano Price has garnered significant support from web3 developers and institutional investors seeking to diversify their altcoin portfolios. Additionally, ADA’s price is currently 79 percent below its all-time high, offering a higher reward-to-risk ratio.
From a technical perspective, the ADA price needs to convert the 200-week moving average (MA) into a support level to secure a bull run towards the ATH. Moreover, the weekly Relative Strength Index (RSI) is hovering around the 70 level, indicating strong control by the bulls.
In March, ADA price experienced a 14 percent drop, trading at around 63 cents on April 1st.
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