Crypto investors should pay attention to Cardano in 2022
Over the past two months, Cardano has delivered a fairly subdued performance in the altcoin sector while consistently moving sideways.
However, early in the third week of 2022, Cardano attracted even more attention as ADA price surged by a whopping 13%. This happened as on-chain activity on the Cardano blockchain surpassed that of Ethereum for a brief period. One of the most exciting events on Cardano is the start of the Sunday Swap taking place on the blockchain on January 20th.
The project developers have confirmed that SundaeSwap will launch as a full-fledged beta decentralized exchange (DEX) with all features. As a result, other projects will have the opportunity to create trading pools for their tokens.
Like other DEXs, SundaeSwap will use smart contracts to coordinate token trades between clients and traders. A portion of the trading fees goes back to the investors who provide liquidity to the platform in the form of yield farming. The Cardano team explained:
“Although the DEX smart contracts have been fully audited and the DEX meets all industry standard security standards, the implementation of fully decentralized governance will not be immediate due to the existing transaction size limits on the blockchain.”
Also, other DeFi protocols are already preparing to launch on the blockchain network. Cardano’s Defi-Hub Ardana has entered into a strategic partnership with the DApp platform NEAR Protocol. The cooperation will help them set up a bridge between Cardano and NEAR for seamless asset transfers.
EMURGO and Cardano launch DApp tool stack
EMURGO, the venture capital arm behind Cardano, also cooperates with the Cardano Foundation. The two organizations will launch a tool stack that supports the growth of decentralized applications (DApps) on the blockchain. The project will consist of two different MVPs. EMURGO boss Ken Kodama said about this development :
“EMURGO fully supports the development of valuable Cardano infrastructure components and we are happy to contribute to the development by an experienced team. With smart contract functionality now supported on Cardano, the new tool stack gives developers more useful options to build socially impactful dApps on Cardano.”
Another development concerns Cardano’s Hydra scaling solution, which is also about to launch the testnet. Last week, Cardano’s parent company IOHK highlighted upcoming on- and off-chain solutions that will scale the network in 2022 .
ADA price picked up momentum earlier this week. The rally at the start of the week helped ADA earn a spot back in the top five crypto list. At press time, ADA is trading at $1.41 with a market cap of $47.6 billion. Big things seem to be coming up for ADA in 2022, so investors should keep an eye on ADA.