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Cardano Has Potential to Become Scarce Asset Like Bitcoin: Community

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Sat, 05/28/2022 - 16:01
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Tomiwabold Olajide
Cardano has the potential to become a scarce asset like Bitcoin
Cardano Has Potential to Become Scarce Asset Like Bitcoin: Community
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According to "ADA whale," a Cardano community-focused Twitter account, Cardano remains one of the few coins that comes close to Bitcoin's distribution and inflation. He also feels that ADA could become a highly scarce asset at some point in the future, as it may follow a BTC-like path.

The "ADA whale" thinks that Bitcoin got its dynamics right because of its fair distribution, its price staying low long enough to allow many to buy, and its fixed supply. Satoshi Nakamoto, the enigmatic Bitcoin creator, believes that scarcity may create value; hence, the maximum supply of Bitcoin was limited to 21 million coins. The 19 millionth Bitcoin was mined in April, leaving only two million BTC to be mined in about 100 years.

Cardano, like Bitcoin but unlike Ethereum, has a finite supply limit, with only 45 billion ADA ever to be created over the coin's existence.

Presently, 33.82 billion ADA are in circulation, accounting for 75% of the maximum supply, and 34.27 billion ADA have been created so far, per CoinMarketCap data.

However, because of continued unfavorable market conditions, the "ADA whale" believes that now may not be the time to load up on ADA. "This is a bear market, so be prepared for possibly months of double digit negative returns if you do," he advises. "Just trying to put it into long-term perspective."

Cardano's closed Vasil testnet deployed ahead of June hard fork

According to the latest weekly report by Cardano's parent company, IOHK, the closed Vasil testnet has already been launched to assess its functionality with a select group of dApps and users. The Cardano team continues to work on consensus-specific enhancements in anticipation of the Vasil Hard Fork Combinator (HFC) event in June.

Cardano Network Statistics
Cardano's Network Growth Statistics, Courtesy: essentialcardano.io

In addition, IOHK provided a chart with network growth information. Currently, 986 projects are building on Cardano, up from 943 previously. A total of 88 projects have recently been launched on Cardano, while the number of NFT projects has risen to 5,727. For the week, Github connects totaled 3,028, while Cardano native tokens stood at 4.9 million.

Also, the number of Plutus scripts was 2,745. ADA is currently trading at $0.46, down 2.28%.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.