Hoskinson, the founder of Cardano, believes that in order for stakers to remain profitable, the underlying transactions of the Cardano network need to be scaled. The Cardano network developers are currently working on layer-two scaling solutions to enhance its web3 ecosystem.
Cardano, a top-tier blockchain with over $400 million in Total Value Locked (TVL), is focused on surpassing Ethereum as the leading web3 hub. While Cardano may be trailing in the meme coin industry, it has successfully democratized scalable smart contracts.
Recently, the Cardano network introduced a fiat-backed stablecoin called USDM, expanding options in the stablecoin industry. Another stablecoin on the network is the DJED algorithmic stablecoin, which has around $20 million in TVL.
To ensure a sustainable future, the Cardano community is discussing necessary developments. According to Hoskinson, the ADA ecosystem needs to establish smooth decentralized governance, streamline treasury operations, and make partnerchains operational.
Decentralized governance is crucial as the Cardano network uses the proof-of-stake (PoS) consensus mechanism, with approximately 22 billion ADA already staked. Hoskinson also acknowledged the need to streamline treasury operations, which provide staking rewards. Furthermore, he emphasized the importance of making partnerchains operational.
Previously, concerns were raised about the sustainability of the staking program due to ADA’s fixed maximum supply of 45 billion and the current daily transactions of about 60k. However, German-based crypto wallets, including NMKR, eternl wallet, and Nami wallet, have enabled a significant percentage of Cardano transactions.
Cardano’s price against the US dollar indicates a potential 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, is committed to revolutionizing the web3 industry. ADA’s price has gained support from web3 developers and institutional investors looking to diversify their altcoin portfolios. Additionally, it is 79 percent away from its all-time high, offering a favorable reward-to-risk ratio.
From a technical perspective, the ADA price needs to convert the 200-week moving average into a support level to secure a bull run towards the all-time high. The weekly relative strength index (RSI) indicates that the bulls are currently in control. In March, ADA’s price dropped around 14 percent, trading at around 63 cents at the beginning of April.