Cardano developers are now focused on completion of the Hydra upgrade which will add a huge jump in scalability for the coin’s DeFi ambitions.
Cardano’s founder Charles Hoskinson has said that the latest upgrade is a “necessity” for the project and has tasked his developers to make this a priority.
“Cardano is going to get hammered by an enormous amount of traffic,” said Hoskinson. “Hydra is a necessity for that.”
His comments relate to the project’s DeFi ambitions and a recent Alonzo upgrade to allow smart contracts. Cardano has long been called an Ethereum killer but the project is living up to that title with real development. The Layer 2 solution is said to be imminent and that could unseat many of the current Layer 1 ETH alternatives that have soared, such as Avalanche.
ADA recently passed the 2 million wallet mark and much of the coin’s are being staked, which will add scarcity to the coin. The Cardano project has gone under the radar with institutional investment and corporate adoption but that could change in the future once the DeFi flows come to the project. Cardano has gone through a big upgrade to redefine the capabilities, security and later, governance.
“On the mainnet, minimum latency is 20 seconds (one block). This is the starting point. In a layer 2 system like Hydra, it is possible to achieve confirmation times of less than one second. Terms like ‘one million TPS’ have been used before. It is a bold number, and while this remains as an aspirational target, the ultimate goal of any system is the flexibility to grow capability with demand.”
Once the Hydra upgrade is complete, other project’s would have to go back to the drawing board to keep up and that is the clear buying opportunity that exist in ADA as it dips below the $1.80 mark.
Cardano Price Analysis
The price of ADA soared to new highs in September above the $3.00 level after the completion of the smart contracts upgrade. The coin was then left in the shadow of ETH and BTC with a drop to $1.80 in late-October. The coin is testing those levels again and could move to $1.60 in the days ahead if Bitcoin is weak. This move looks like a technical correction and the addition of the Hydra upgrade could make this a good buying opportunity in ADA.