What can holders or crypto enthusiasts expect from Cardano [ADA] in the coming days? However, a bigger question is could significant updates lead to a much-needed price growth for Cardano’s native token?
Here’s AMBCrypto’s price prediction for Cardano (ADA) for 2022-23
Cardano remains one of the biggest and most-developed L1s within the crypto ecosystem. While Cardano was slow in adding the smart contract functionality, it had a leg up on other L1s in scalability and security. One of the reasons why many projects rely on Cardano over Ethereum is for its smart contracts.
But one special project was SundaeSwap. An automated liquidity provision protocol and decentralized exchange on Cardano that enabled the swapping of SUNDAE and ADA on the SunDaeSwap exchange.
The popular decentralized exchange (DEX) SundaeSwap successfully launched Hydra, a key layer 2 solution to further improve Cardano’s scalability. Although, the team added,
Today our team is excited to demo something we've been hard at work on for months:
SundaeSwap on Hydra! While a ways out, this is an important milestone in not just our scaling journey, but Cardano's as well.
We'll provide detail later, but in the meantime check out our video⬇️ pic.twitter.com/eRyUPT88QL
— SundaeSwap Labs 🍨 (@SundaeSwap) October 14, 2022
Following this, in a tweet, Cardano founder Charles Hoskinson asserted that “Hydra is coming to Cardano one DApp at a time” in response to SundaeSwap’s Hydra demo.
Hail Hydra! So glad to see this demo. Hydra is coming to cardano one DApp at a time https://t.co/k9i1wG3OKO
— Charles Hoskinson (@IOHK_Charles) October 15, 2022
Overall, Hydra could be the key layer 2 solutions to further improve Cardano’s scalability layering a new protocol on top of the existing layer 1 blockchain. This could also aid ADA’s price in the near future.
Needless to say, the demo caused a lot of stir within the Cardano community following the Hydra update. Lead Hydra developer Sebastian Nagel lauded the effort from the SundaeSwap team, stating his interest in improving the protocol with their help.
Meanwhile, SundaeSwap Labs CTO had to say about this demo,
The thing I’ve been emphasizing in person is: IMO Hydra is not a single solution; it’s a design space, of which the Hydra team has been building the “purest” example; there are lots of other points in the space that make different tradeoffs and are suitable for other dApps.
— Quantumplation | Pi Lanningham (@Quantumplation) October 15, 2022
Developers launched the Hydra Heads protocol on the public testnet in March. Some users have expressed the belief that these features would make Cardano, often touted as an “Ethereum Killer,” the king of DeFi soon.
Did it help or rather boost morale? Development activity and trading volume both saw a much-needed uptick as per analytical platform, Santiment.
Alarms ringing here
Yes, the Cardano development team launched Hydra heads on public Cardano Testnet. But did it create any new news for ADA? Well, not really. In fact, prominent bears spell doom for Cardano as price slipped to a 21-month low. The native token, at present, had witnessed a 13% fall in a week’s time, hence the further slump in its price.
On CoinMarketCap, ADA stood at the $0.36 mark.