Main navigation

Cardano Set to Hit Major Interoperability Milestone as EVM Compatible Layer 2 Launches

Sat, 03/26/2022 - 15:00
article image
Tomiwabold Olajide
Key interoperability milestone nears on Cardano as EVM-compatible Layer 2 launches
Cardano Set to Hit Major Interoperability Milestone as EVM Compatible Layer 2 Launches
Cover image via

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

Cardano might be set to hit a major interoperability milestone amid the debut of Milkomeda, an EVM-compatible Layer 2. The Milkomeda C1 mainnet is expected to launch on March 28.

In late February, Milkomeda, a Layer 2 Protocol (Rollups) delivering EVM capabilities to non-EVM blockchains in collaboration with Nomad, a novel interoperability protocol, launched a bridge testnet between Cardano and Ethereum. Now, the bridge is expected to go live in mainnet.

Once deployed, assets can be sent back and forth between the two blockchains via the bridge. Milkomeda will work to achieve both sidechain and multi-blockchain interoperability visions.

Users holding tokens on the connected chain can move these assets to Cardano and vice versa, simply by wrapping them on the sidechain that links the two blockchains. These tokens become native assets on Cardano mainnet and perform the same functions as native assets on Cardano, once wrapped.

ADA price action

ADA was trading at $1.12 at the time of publication, up 3.05% on the day. By market value, ADA is the seventh-largest cryptocurrency, with a 28.79% drop in the last seven days.

After a drop to the $1.07 level the day before, ADA recovered to highs of $1.14 as seen at press time. ADA has rallied more than 80% since hitting lows of $0.80 on March 15. ADA rose above the crucial barrier at $0.95 to climb higher.

As it stands, ADA might be forming a bullish pennant that might lead to a continuation of its upside move. In this case, the next barrier is at $1.52, while support remains at $0.95.

IntotheBlock analytics reports increasing accumulation across the board in different tier addresses. The on-chain analytics firm notes that addresses holding 10-100 ADA and 100,000-1 million ADA have increased their balances by 12% and 11%, respectively, since March.

article image
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.