Cardano: Institutions go all-in on ADA

Is the ADA of the Cardano blockchain making a comeback? It may well be. A few days ago we informed you that approximately 1.5 billion ADA have been deposited in staking within 12 hours. But that’s not all ! Institutionals also seem to be positioning themselves favorably on the Cardano token.

Transactions over $100,000 in ADA explode

What some might have thought to be a passing phenomenon seems to be turning into a fundamental trend. At the beginning of March we informed you that the whales had accumulated more than 12 billion ADA (more than 40% of the ADA in circulation that are currently in the hands of the whales.) The Cardano blockchain had even exceeded Ethereum in volume transactions in February.

The flood of positive news for ADA holders doesn’t stop there, as IntoTheBlock released a tweet stating that LTV (Large Transaction Volume) has skyrocketed! For those unaware, the LTV lists transactions over $100,000 on the network.

Since the start of the year, LTV has gone from 1.35 billion ADA per day to 69 billion ! This represents a transaction volume of more than $80 billion done every day! In the space of 3 months, the number of transactions over $100,000 has therefore been multiplied by 50 ! A level not seen since mid-2018.

These metrics therefore show institutional interest in the Cardano blockchain, but also in its ADA token, which could benefit from price appreciation as its DeFi ecosystem evolves.

These transaction volumes are not the only indicators of renewed interest in Cardano.

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Cardano which embeds more and more users in its rocket

An interesting thing to consider is that despite volatility and a relatively flat average transaction count, IntoTheBlock also reported that the number of addresses created has been increasing since the start of the year. Indeed, these have gone from 3.4 million to 5 million in 3 months, while the number of decentralized applications remains very low compared to the blockchains of which Cardano claims to be the competitor:

Defiliama lists 7 DeFi DApps on Cardano

All for a TVL (Total Value Locked) located around $263 millionafter a historic peak of $326 million reached on March 24.

DeFi protocols on Cardano have just over $250 million locked up

If you don’t know, ask Charles Hoskinson

Although the Cardano blockchain and its co-founder Charles Hoskison have many detractors. The CEO of IOHK still sees a bright future for his blockchain and finds an explanation for the limited number of DApps, when asked about it on twitter:

Charles Hoskinson responded via tweets to a user who mocked the few DeFi protocols present on the Cardano blockchain
Tweet by Charles Hoskinson

“What most also don’t understand is that many Cardano DApps are waiting for the launch of the Vasil hard fork in June to benefit from pipelining. So it looks like we haven’t seen anything in terms of TVL yet.”

Charles Hoskinson

Ndr: pipelining is a solution to increase the scalability of the Cardano network.

Developers would therefore be in the starting blocks to deliver DeFi protocols on the blockchain, once the hard fork is effective.

Charles Hoskinson also spoke about the future of Web3 during a keynote at Binance Blockchain Week, raising questions about the boundaries between regulation and decentralization:

“As blockchains become more advanced and more powerful, we have to start making difficult and uncomfortable philosophical decisions. »

Charles Hoskinson, during the Binance Blockchain Week keynote

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What Charles Hoskinson is implying is a reality for which the sector does not yet seem to find answers, that of regulation. Because since she delved into the subject of blockchain, questions that were not considered before began to surface.

The questions that Charles Hoskinson raised are:

  • “When can we cancel a transaction? »
  • “If we can, when can we freeze your funds?” »
  • “I thought we could never do this”

Beyond the “We’re here for the tech” joke that can be seen on social media during a bearish market phase, the Cardano co-founder called on blockchain users and enthusiasts to get involved. more in the ecosystem and not just looking for profit taking and speculation. Because when we have sorted the crappy projects from those who really want to bring something new, we find women and men inhabited by a vocation who seek to revolutionize the Internet. But some projects can sometimes die prematurely as a result of massive profit taking by some of their users and lead to significant capital losses for others, what alerts the regulators .

According to Charles Hoskinson, one of the solutions to regulation could be the DAO and ended his speech on a positive note:

“If we’re really decentralized, we have to find out for ourselves.”

Charles Hoskinson, during his speech at Binance Blockchain Week

Often seen as a Vapor Chain, Cardano seems to have attracted institutional investors into its ecosystem, but whether this is genuine interest in blockchain or simply opening a position on it remains to be seen. and ADA tokenwith a view to taking profit following the appreciation of its price, which could happen in June following the hard fork. It’s up to you to form your own opinion…

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