At Cardano (ADA), developers are giving hope that a Hydra-christened upgrade is nearing launch sooner than anticipated. September’s Alonzo upgrade left moneyed questions about ADA.
Cardano’s (ADA) price curve has been showing a clear downward trend for weeks, and the cause is obvious. When the Alonzo upgrade was brought in to Cardano in September, it was associated with expectations that ADA would become ripe for the DeFi division. But these assumptions have not been confirmed, DeFi projects like the DEX SundaeSwap for Cardano are stuck in test runs. The next upgrade Hydra could bring relief.
A beta version 0.2.0 was released for Hydra a few days ago. Cardano expert Matthias Benkort interprets this via Twitter as a decisive step towards tests for Hydra and a subsequent launch on the mainnet. Until now, the 2nd half of the year was considered the target date for Hydra at Cardano, but it is possible that the development process could be accelerated. Benkort emphasizes that Hydra is also being longed for by DeFi projects at Cardano because it strengthens scalability by adding a second layer of technology.
The idea behind Hydra is to tie into the actual blockchain of Cardano sidechains. DeFi and other applications can then be implemented there, which conserves capacities in the mainnet. This method is similar to sharding, which is the aim of Ethereum (ETH), for example. Optimists already see hundreds of thousands of transactions per second (TPS) possible with Cardano after Hydra at the usual low to zero fees. This would push Cardano ahead of the competition among altcoins in terms of performance.
Skeptics, on the other hand, recall that Cardano’s timelines have been delayed several times in the past. Cardano founder Charles Hoskinson, meanwhile, just reported back from a week of meditation and has not commented on the developments surrounding Hydra so far.
Conclusion: ADA hopes for positive impulses
Cardano’s price value has roughly halved since the Alonzo upgrade, and ADA sees itself relegated to sixth place among major cryptocurrencies. Progress on Hydra has not been able to directly support Cardano’s price. The discussion about Hydra shows: developers and investors are impatiently hoping for positive impetus from Cardano to open up new fields of application technologically. For at present, Cardano presents itself as being stuck in terms of content, despite the still enormous capitalization of a good 40 billion US dollars, which is also expressed in a staking ratio of more than 70 percent of all ADA.
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