Rapid Usage of Cardano Drives Extremely Bullish Ecosystem Development of ADA
The Cardano ecosystem is exploding with activity, with around a thousand active projects.
Although recent regulatory challenges in the U.S. may have significantly contributed to the depressed price of Cardano (ADA), this has not slowed the cryptocurrency’s uptake.
The adoption of Cardano has skyrocketed over the last year and a half, with ADA almost tripling in popularity in the United States alone. The “Morning Consult” crypto analytics company reports that 7% of Americans, or around 10 million individuals, are ADA holders. This statistic has increased by almost 100% from January 2022, when it stood at 4%.
Cardano’s unique staking features have attracted increasing users looking to benefit from their holdings, dramatically increasing adoption. Individuals may participate in a decentralised financial service known as staking to receive incentives for storing and confirming transactions on a blockchain network. Staking has gained popularity over the last couple of years as a way to produce money passively, with Cardano giving a yield of more than 3% annually.
Staking Rewards reports that 62% of all ADA in circulation is currently staked, proving that it has become a desirable investment choice. After Ethereum (ETH) and Solana (SOL), Cardano now offers the third-highest staking payouts among all cryptocurrency networks. It’s estimated that tens of millions of individuals can stake ADA via centralized exchanges, which has led to many stakers.
When compared to other digital currencies, Cardano has consistently shown superior decentralisation. The Cardano community has advocated for more decentralization by proposing several platform enhancements, most notably CIP-1694. Charles Hoskinson said they want to build Cardano in a way that acts as a wake-up call for other cryptocurrencies in late May, emphasising the need for decentralization.
Input Output Global (IOG), the company behind Cardano, unveiled “Project Catalyst,” a decentralized innovation fund of the Cardano ecosystem, on June 23 to aid in the expansion and improvement of the Cardano network. Fifty million ADA tokens, the most significant financial pool for the ecosystem to date, were set aside for that purpose.
Due in large part to its appealing characteristics like cheap fees and high transaction speeds, Cardano’s design has also attracted a considerable number of developers. Consequently, 1,259 projects are now being developed on top of the network, with 130 already launched.