$ADA Burning mechanism might come to Cardano despite resistance

  • Cardano is now looking into a token burning mechanism, proof of burn (PoB) from Iagon tech company.
  • Initially, founder Charles Hoskinson adamantly rejected the proposal, but now seems to have given in to pressure to cut down the 45B ADA token supply.

The Cardano (ADA) blockchain has been considering introducing a proof-of-burn (PoB) mechanism to its ecosystem. Proposed by Cardano founder Charles Hoskinson, the PoB will be brought forth by the Iagon decentralized cloud services platform.

Invented by Iain Stewart in 2012, PoB is an alternative consensus algorithm with several applications. In proof of work (PoW) blockchains, burning cuts down energy consumption by reducing the amount of mining energy required. Additionally, the mechanism allows miners to “burn” virtual currencies, in exchange for mining privileges or the blockchain’s native currency, in this case, ADA. And as Iagon notes in its blog, the burning mechanism “may be used as a proof of commitment in blockchain protocols.”

To burn coins, miners need to send them to a verifiably un-spendable address, also known as a “black hole” address. Tokens in this address can never be retrieved. Resultantly, ADA tokens become scarce (deflationary pressure), boosting their value. Other token-burning techniques, such as Ethereum’s EIP-1559, burn a portion of the transaction fees instead.

Cardano Proof of Burn solution for deflationary pressure

Notably, the PoB solution has come in response to criticism directed to Cardano for its huge supply of ADA tokens. According to our data, the network has its token supply capped at 45 billion, with over 32 billion tokens currently in circulation.

Some members of its community are also concerned about growing competition from rival networks Ethereum and Binance Smart Chain (BSC). The former recently introduced a deflationary mechanism through the EIP-1559. Similarly, Binance Coin recently held its 17th token burning, removing 1 million BNB tokens, or $639 from the supply. Hoskinson noted after the observations were made that;

It’s time for the Cardano community to deal with hostile proposals,” 

Lagon’s protocol came up as the best choice for Cardano due to its censorship-proof abilities applied on all user wallets. The platform’s solution practically zeroes out the possibility of miners opposing ADA token burning.

Cardano’s PoB application was meant to be launched after the completion of the Alonzo series, which took place on Sept. 12. Hoskinson noted that the new application would engage new developers of the Cardano ecosystem and be ideal training for them. The tech entrepreneur even offered the best developer a reward in the form of an NFT.

Earlier on, Hoskinson was strongly in opposition to a token burning feature for the Cardano network. As CNF reported, Hoskinson said token burning was synonymous with “grabbing someone’s wife,” or siphoning gas out of other people’s cars for your own. Indignant with the suggestion, he said it would only benefit those looking to make a little extra cash then move on to something else more hyped.

Source: CryptoNewsFlash

Watch Out For Cardano (ADA) in 2022!

Cardano seems to be unstoppable surpassing $2.00, and the outlook for 2022 looks optimistic for ADA holders.

The overall price action in the cryptocurrency market during 2021 has been an extension of the bull-run witnessed over the last months of 2020. Cardano (ADA) has since picked up a strong bullish momentum and managed to steal the show among the altcoins sphere, setting its tone as a real competitor among the majors.

Nowadays, according to Coinmarketcap, ADA exchanges hands at $2.22, with a market capitalization of around $72.90 billion, standing in fourth place in the ranking of the largest cryptos by market cap.

Additionally, the project founded by Charles Hoskinson has seen some improvements on the blockchain that bolstered the confidence among the virtual currency during the first few months of the year. Most recently, in September, Cardano deployed its Alonzo hard fork.

Now, after cracking the $2.00 threshold and consolidating its yearly gains, crypto traders are eyeing next year’s forecasts. AI-based forecast models like WalletInvestors are predicting ADA to reach $4.587 as of press time as a yearly projection, while its five-year forecast says that Cardano’s coin could skyrocket to $14.05.

So, what will be the future of the price after the ongoing consolidation around $2.00 in 2022?

ADA Technical Analysis for 2022

As the year-end period looms and Bitcoin (BTC) is finally breaking through the price of $60,000, which is the latest critical hurdle ahead of its all-time highs, ADA has been trapped in some sort of rangebound that has not been resolved since the lows seen during September 21 at $1.90.

As a contraction has been developed across the board, the 200-period simple moving average (SMA) at the H4 chart is capping gains and limiting any further advance of ADA above $2.40.

Cardano ADA Price Analysis

That said, bulls need to breach such an area in order to allow a golden crossover of the 50-period simple moving average with the 200 SMA and thus bolstering the bullish case. A golden crossover in the H4 chart is significant in the crypto markets, given that it is a solid signal that could unleash a bullish force that can strengthen it further. If that is the case, ADA could prepare the ground for a bullish 2022 that could take it to test levels of around $5.00.

In fact, another forecast model, LongForecast, put the price of ADA at Q4 of 2022 at around $3.24, which is the average price that Cardano’s coin could aim for in a possible bull-run.

Source: FinanceMagnates

Cardano is 45% cheaper than world’s largest altcoin, according to Grayscale

  • Cardano has over 2.8 million active users, up 7.3 times since the beginning of 2021. 
  • The valuation of Cardano per monthly active user, as per Grayscale, ADA is nearly 45% cheaper than its rival Ethereum. 
  • Analysts expect Cardano to exhibit greater volatility than Bitcoin and other risk-on assets during market cycles, attracting more traders to ADA. 

Next-generation internet platform Cardano poses tough competition to Ethereum with its smart contract functionality, attracting exciting DeFi projects and applications to its blockchain. 

Third largest cryptocurrency ADA is 45% cheaper than ETH based on user fundamentals

Grayscale, a leader in cryptocurrency asset management, recently published a report on Cardano. The asset management firm has evaluated the Web 3.0 crypto network.

The Cardano network is currently processing over 115,000 transactions per day, up over 13 times since the beginning of 2021. 

The early ecosystem projects on Cardano have attracted several applications to the blockchain. 

A feature of Cardano that differentiates it from top competitors like Ethereum is that the network allows users to send multiple asset types within the same transaction. This feature is expected to attract more decentralized applications projects to the network. 

The altcoin’s transaction count has increased despite the price rise.

ADA price v. transaction count.
ADA price v. transaction count.

The asset management firm valued the altcoin in terms of active users per month and revealed that Cardano is currently nearly 45% cheaper than Ethereum. 

Though the rollout of decentralized applications (dApps) on Cardano mainnet is still in its early stages, there is an ecosystem of projects testing their smart contract capabilities on the Ethereum-killer’s blockchain. 

Besides, Cardano’s monthly active wallet address count exceeds Ethereum, fueling the narrative that ADA is ready to take over the largest altcoin by market capitalization. 

Cardano & Ethereum monthly active addresses.

Cardano & Ethereum monthly active addresses. 

Grayscale analysts expect that ADA would display higher volatility than Bitcoin and most other altcoins in the long term. 

Proponents consider that the rise of use cases and projects on the Cardano network is likely to increase network usage and support value rotation into ADA. 

Analysts have evaluated the ADA price trend and expect the altcoin to rally past $2.64. Analysts expect a transition in ADA price trend on October 5. 

Cardano (ADA) expected to blast through the $3 milestone ahead of Alonzo hard fork

  • Automated market maker Cardaswap will get bridged to the Cardano blockchain after successful completion of the Alonzo hard fork.
  • The hard fork combinator event scheduled for September 12 is a major milestone as Cardano ushers in a transformative era of “smart contracts capability.”
  • ADA has surged 31% in the past two weeks, analysts set the next target at $3.
  • 81% of participants on Polymarket bet in favour of Cardano’s smart contract launch by October 1, 2021.

As non-fungible token creators consider minting NFTs on Ethereum “unfeasible” due to high transaction costs, Cardano offers a viable and low relative cost alternative on its mainnet. 

ADA rally continues as Alonzo Hard Fork event draws close

Input Output Hong Kong (IOHK), the blockchain development company behind Cardano, shared an update on August 26 outlining the final implementation in the launch of Daedalus, the full node wallet for native cryptocurrency ADA. 

The development team is counting down to the Alonzo Hard Fork scheduled for September 12. The network is now prepared for a public Alonzo testnet hard fork.

Cardano price rallied over 30% in two weeks, and the announcement is driving the rally higher. ADA hit an all-time high of $2.95 last week, and analysts expect the altcoin to hit a target of $3. 

Benjamin Cowen, a cryptocurrency analyst and YouTuber, recently shared his analysis in a strategy session on the video network. Cowen highlights the correlation between Cardano and Bitcoin. If Bitcoin stays above 20-week Simple Moving Average (SMA), Cowen expects Cardano to continue its price rally.  

Cowen remarks,

Is ADA likely to hit $3.00? The answer to that question likely is just if Bitcoin stays above the 20-week (moving average), it lies with that answer. If Bitcoin is able to stay above the 20-week for just… a day or two, definitely the next few weeks it seems very likely that ADA is going to blast through the $3.00 milestone.

The Cardano community now has renewed confidence in its smart contract launch on the mainnet following the updated announcement and the price rally. It is evident from a bet on the launch of smart contracts on the Cardano network. In an open-betting pool on Polymarket, a global information markets platform, 81% of the participants are in favor of Cardano’s mainnet launch. 

Up from 64% eight weeks ago, now 81% participants are confident that smart contracts will arrive on Cardano mainnet by October 1, 2021. 

Source: Fxstreet

Should you buy ADA in August 2021?

On August 1, the founder of Cardano, Charles Hoskinson, updated the community on updates regarding the blockchain. He claimed that things are on schedule and that things are moving along nicely in regards to the Alonzo hard fork. This is a showcase that the blockchain is constantly being improved upon, and with the media attention, the ADA Tokens are bound to see an increase, especially given the increase in the circulating supply we’ll end up seeing after the hard fork.

EMURGO, which is a founding Cardano (ADA) entity, announced that it will launch a new platform intended to bridge the interaction between ADA users and decentralized applications (dApps) on the blockchain network. This will be done through the rollout of the Yorodi dApp connector, which will essentially get ADA holders access to decentralized applications on the Cardano blockchain directly from their browsers through a plugin. Through this plugin we can expect a much higher level of Cardano activity in terms of the circulating supply.

Should you buy Cardano (ADA)?

On August 1, Cardano (ADA) had a value of $1.31.

It experienced its all-time high value of $2.45 on May 16 of 2020, which gives us a perspective of how high the token has risen in value historically. When we compare it to its value on August 1, there is a 46% difference.

However, to get a clearer perspective of its recent hikes and drops in value, we will be analyzing its performance in July.

On July 4, it got up to $1.49, making it one of its highest recent points. On July 20, it dropped to $1.02, which gives us a perspective as to how low it has gone. Comparing July’s high with the all-time high, there is a 39% drop in value, or in other words, that much potential for the token to regain its value.

According to data from IntoTheBlock, Cardano (ADA) has experienced $16.41 billion in transactions greater than $100.000 in the last 7 days. 

Furthermore, we can see an 8% increase in the trading volume of ADA tokens within the last 24 hours, which signals a heightened activity of the blockchain.

This being the case, at $1.31, ADA might be a worthwhile purchase as we can expect its value to rise by 40% after the hard fork rolls out, which would result in a value of $1.83 within the span of the month.

Source: Various

World Mobile Chain May Be Cardano’s First Killer App

After years of building a foundation in Africa, Cardano and its developer Input Output Global (IOG) have been making considerable progress on the region. On April 30th, 2021, the company announced its partnership with World Mobile, a mobile network to connect millions and provide millions with “affordable” local internet connections.

At the beginning of July, the CEO of World Mobile Micky Watkins talked with Cardano founder Charles Hoskinson on the reasons that make Africa ideal for the partnership. Watkins acknowledged the high demand in the region to access the internet. Hoskinson added:

Internet is so much more than utility – it’s a human condition. It allows us to talk to eachother, connect with eachother, share ideas, and it’s the single biggest driver of change throughout the world. It spreads freedom, financial freedom, economic identity.

The partnership will build a network on top of Cardano and its blockchain infrastructure which will include IOG’s Atala PRISM solution. In a more recent interview with Delphi Digital, Watkins discussed how World Mobile combines a range of technologies leveraging a distributed infrastructure on the blockchain and a token supported for IOG.

A Scalable Solution On Cardano For A Problem Affecting Millions

In the interview, the COOs of World Mobile Alan Omnet and Andrew Soper also answer some questions on why they chose Cardano for the project. Omnet revealed that they considered other networks, such as Ethereum, but they believe that the transition from a proof-of-work consensus to a proof-of-stake could bring issues.

In addition, they called Cardano a more scalable network. The project and the platform have found themselves at a “right time”, as the network prepares to deploy its smart contract capabilities around September 2021 with the third and final hard fork combinator (HFC) event “Alonzo”. Omnet said:

(Cardano) has been formally proven that it’s going to work when it goes live, and when you’re building a financial network and the financial system and foundational infrastructure, you want to know that it is going to work from the start.

The platform’s commercial side was another appealed for World Mobile, as IOG has been growing a team on Africa for a while with close relationships with local governments, educating the population, and training local human talent. On their implementation, Omnet clarified that they are building a hybrid public-private chain.

Cardano will be the public component and the World Mobile Chain, running as a side chain, the private. The former will also operate as the public financial settlement layer, the latter as the distributed data layer. The project is on its latest iteration, integrating the latest changes introduced on Cardano by the previous HFC events.

So now we’re integrating that. It’s planned to be complete by the end of the year with the digital ID and full commercial rollout. So we’re not dependent on a smart contract piece to launch. However, we will add smart contracts as they become available.

Watkins added that the partnership was formed from two different visions, but with a common goal. IOG seeks to bank the unbanked, and World Mobile connects the unconnected. Plutus is well on its way for launch by late 2021 with Alonzo moving forwards on its testnet.

In the meantime, World Mobile continues to consolidate partnerships in different sectors. Via their Twitter handle, the company announced a new partnership with Fulham FC, one of the most important football clubs in London. Watkins said the following on the cooperation, calling it a major accomplishment for the blockchain industry:

We are so excited to begin this partnership with Fulham FC. It’s crucial to us that we share the same values as our partners, and we’re confident that based on Fulham FC’s history, we have a shared viewpoint. This partnership will help spread the word on our mission to connect Africa and beyond, giving everyone an opportunity to get involved.

Source: Bitcoinist