Looking Back On Cardano’s 2022, What Potentials Are Hidden In 2023?
- Cardano passed another set of bull and bear tests in the encryption sector as a seasoned public chain project when the giant in the encryption field collapsed in 2022, and everyone was generally affected.
- The Vasil hard fork will be the most significant development in the blockchain in 2022.
- The network has so far progressively developed an ecosystem structure that is dominated by DEX and NFT initiatives during the past six months.
2022 flies by, and after witnessing several “black swan” events, such as Terra/Three Arrows Capital/FTX, the entire encryption market has also experienced extreme stress tests one after another.
Everything in the past is a prologue. As a veteran public chain project, Cardano, when the behemoth in the encryption world collapsed in 2022, and everyone was generally affected, also withstood another round of bull and bear tests in the encryption industry.
The gray line of the grass snake, the veins are thousands of miles away. We will take stock of the key milestones and potential trends of Cardano’s development in 2022, as well as the potential changes worth looking forward to in 2023, exploring the key year of Cardano’s ecosystem development.
The Catalyst of Vasil Hard Fork Upgrade
The biggest milestone in the development of Cardano in 2022 is none other than the Vasil hard fork on September 23.
This hard fork upgrade involves Cardano’s major improvements to the custom smart contract language Plutus, which means that Cardano has completely entered the era of smart contract public chains from the traditional public chain, providing a new wave of DApps, new users, and the ultimate Cardano ecosystem TVL and lay the foundation for ecosystem growth.
The main upgrades include:
- CIP 31 introduces a new reference input for accessing information stored on the Cardano blockchain, allowing anyone to look up the output without having to process it;
- CIP-32 proposes a solution that allows appending the data itself rather than a hash of the data in the output, allowing simpler communication of data values between users;
- CIP-33 introduces the ability to reference scripts without including them in every transaction, greatly reducing the impact of scripts on transaction size;
In short, the Vasil hard fork upgrade aims to allow the Cardano blockchain to do more and do it better, significantly increasing the speed and scalability of the network, enabling it to support more complex blockchains with a better user experience DApp, so as to truly build a smart contract platform, tap the narrative space of the “smart contract platform” in the second half of Cardano, and also lay the foundation for a new wave of DApps, new users, and ultimately the growth of Cardano’s ecosystem TVL.
The dApp ecosystem matrix is emerging
As Cardano entered the era of smart contracts in September last year, the infrastructure of the Cardano ecosystem has gradually improved over the past few months, gradually ushering in the attention and influx of market funds and the goal and vision of building a smart contract platform have slowly begun.
Up to now, in the past half a year, Cardano has gradually formed an ecosystem structure dominated by DEX and NFT projects. Various types of applications, such as DEX, Launchpad, stablecoins, etc., in the DeFi field, have also appeared, and Cardano’s dApp ecosystem matrix has just emerged.
Synthetic Asset Protocol Indigo Protocol
As early as 2021, with the rapid advancement of the Ethereum DeFi concept, the derivatives track (futures, options, synthetic assets, etc.) was once regarded as the most promising future sector, but two years later, derivatives track performance has always been unsatisfactory.
However, in 2021, Mirror’s path to the rise of the Terra ecosystem, to a certain extent, shows the relative advantages of high-performance public chains in the synthetic asset track, and this is a natural advantage for Cardano:
- On the one hand, with the help of Cardano’s performance and cost advantages, many use cases that are limited by the unique functions of the Ethereum main chain can be gradually implemented;
- On the other hand, the total market value of Cardano is still as high as $12.6 billion, and it is second only to Bitcoin, Ethereum, BNB, and XRP in the ranking of non-stable coins, which means that ADA is the underlying assets can provide sufficient volume support for the ecosystem of synthetic assets.
Among them, Indigo Protocol, a synthetic asset protocol of the Cardano ecosystem, launched the stablecoin iUSD in November 2021, allowing ADA to be mortgaged to mint stablecoins.
In the past month, Indigo Protocol has grown by as much as 50%. According to TVL calculations, it is currently the third largest DeFi protocol on Cardano (nearly $20 million). The synthetic asset track of the Cardano ecosystem is gradually gaining momentum. It is indeed worth looking forward to whether the market can set off another “DeFi summer” of Cardano.
Collateralized Stablecoin Djed
After experiencing crazy issuance in 2020 and 2021 and the test of stability in 2022, the stablecoin itself has clearly entered a new stage of development. Whether it is in-depth binding and use in the encrypted world, or cross-border In the process of border payment, it will play a more important role.
As Cardano, the “elephant in the room,” if it goes further in the next public chain ecosystem competition, strengthening its own stablecoin matrix is also a core factor that cannot be avoided.
Djed, as Cardano’s ecosystem USD-anchored overcollateralized algorithmic stablecoin, plays this key role – it has been developed by the blockchain company Coti and Cardano’s lead developer Input Output for more than a year and can use ADA to 400% to 800% mortgage rate for minting.
At present, Djed officially launched the main network in January and has received the support of MinSwap, Wingriders, and MuesliSwap, and gradually integrates more Cardano ecosystem projects.
From this perspective, Djed has built a series of scenarios around the user needs for stablecoins from the very beginning, creating a breakthrough path of “stablecoins + scenarios” for the entire Cardano ecosystem.
If you can gradually build your own composable ecosystem based on ADA on a series of tracks such as DEX and derivatives and finally converge the core scenarios of the ecosystem to the needs of stablecoins, thereby deepening the robustness of the ecosystem step by step, In the end, Cardano can move towards a relatively healthy positive cycle and a stable ecosystem.
Anchored stable currency USDA
In addition, the recent encounters with BUSD and others also indicate that in 2023, the stablecoin track may usher in the normal state of “strong regulation”, and compliance is overwhelming.
Cardano’s commercial incubation company EMURGO has also made preparations for this – it plans to launch an anchored stablecoin USDA that is fully backed by fiat currency and meets regulatory requirements in early 2023.
In general, according to the future ecosystem map previously announced by the Cardano community, there are currently project parties deploying it in multiple sectors such as lending, wallets, and NFT.
NFT track corner overtaking
Another trend worthy of attention in the Cardano ecosystem in 2022 is the trend of overtaking curves on the NFT track.
In the month following Vasil’s upgrade in September last year, Cardano’s NFT transaction volume reached $19 million, making it the third-largest NFT network after Ethereum and Solana.
Subsequently, this trend has been further consolidated. From the perspective of the overall ranking, since the major upgrade of Vasil in September, Cardano’s activity has indeed increased significantly . The latest data from CryptoSlam shows the average daily transaction of NFT on the Cardano network in recent times. The volume is around $250,000.
From a micro perspective, the trend of specific NFT projects on the Cardano network is now clearly rising, and the Clay Nation series of NFT works is the most typical example:
As a clay animation art and culture project acquired by Snoop Dog and built on Cardano, the Clay Nation series NFT has received more and more attention after the release of the related MV produced by Snoop Dogg and his son Champ Medici.
At the same time, in terms of total volume, among the top NFT series on Cardano, the top three have also accumulated a transaction volume of more than $20 million, which has enough soil foundation to breed high-quality IP and explosive models.
The most important thing for an NFT project is its own brand awareness and the community consensus it has built. Based on the community awareness initially established in 2022, can Cardano’s NFT track in 2023 gradually form a strong community and an open culture and then, through long-term intensive cultivation, establish an IP with huge commercial value like BAYC and others?
The opportunities and dividends that may be hidden in it are worthy of long-term attention.
Contribute public product standards to the industry
In addition to industry public products other than ecosystem, Cardano development company Input Output Global (IOG) has also cooperated with the University of Edinburgh to develop the first “Edinburgh Decentralization Index” (EDI) in the blockchain industry to measure block Whether the chain is effectively decentralized aims to add greater transparency and inclusiveness to the entire decentralized technology field.
The index will evaluate the degree of decentralization of blockchains based on several levels, including API, consensus method, hardware, software, network, token economics, governance, and validator geography, contributing public product standards for the industry.
Now looking back at 2022, first, the collapse of Terra in May had a huge impact on the stable competition track, especially the algorithmic stablecoin, which profoundly affected the evolution of its internal and external structure; then, the FTX crisis in November made users more concerned about the centralized exchange. The sense of distrust in the market has intensified, and the outflow of market funds to the chain has become a new trend, and the importance and attention of the chain have become increasingly significant.
Cardano has always focused on self-construction in waves of crises and has continued to make further progress in the vision of “Making the world work better for all.”
The road is obstructed and long, and the line must arrive.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu