The crypto giant Grayscale says Cardano’s future could hinge on one all-important factor.
In a recently published report, the digital asset manager says Cardano is currently processing more than 115,000 transactions per day, up about 13x since the start of 2021. The network also now has about 2.8 million users, a 7.3x increase since the start of the year.
Grayscale says that sustaining Cardano’s network growth could be the key to driving existing and new investors to Cardano’s native asset ADA in the short to medium term.
“If dApps (decentralized applications) and other new use cases attract new users, drive increased network usage, and improve Cardano’s metrics, these factors may support a fundamental value rotation into ADA by existing and outside investors.”
Grayscale’s analysis comes on the heels of Cardano’s deployment of smart contracts on its mainnet last month, enabling the Ethereum competitor to launch dApps on its platform.
Looking at the bigger picture, Grayscale says Cardano’s ability to develop a “compelling cloud super app platform and dApp ecosystem for users” will determine whether the protocol achieves lasting success.
“Multiple Web 2.0 cloud providers – including AWS (Amazon Web Services), Google Cloud, Microsoft Azure, Alibaba Cloud and Tencent Cloud – have achieved material success today to differing degrees. The crypto cloud market may follow a similar path, and Cardano may not need to be the only winner to achieve success. If Cardano can reach its goals, its features, along with the network’s large user community, may allow the ecosystem to capture meaningful share within the rapidly growing crypto cloud platform market.”
ADA is trading at $2.19 at time of writing, down more than 26% in the past 30 days, according to CoinGecko.
You can read the full report here.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/KHIUS