We Are Growing Organically Like Bitcoin, Will ADA Prices Boom?

Taking to X on December 18, Charles Hoskinson, the founder of Cardano, celebrated the network’s recent growth, noting that it’s mirroring the organic development of Bitcoin (BTC). While some have expressed concerns about network congestion, Hoskinson affirmed that Cardano is designed to handle such loads and has ample room for future scalability.

Demand Increasing, Cardano Moving Away From “Ghost Chain” Status

In a post garnering significant attention on X, the founder said he has been watching with ” glee as some people worry about Cardano’s blocks filling up.” The founder reminded the community that it was only a few months earlier that the network had been slammed for being a “ghost chain” with no utility. 

However, as the network “gets busy” and blocks fill up, Hoskinson assured the community that the platform is designed to handle rising demand with more room to grow in the future. While Cardano aims to compete with Ethereum as a smart contract platform of choice, its development is anchored on peer research, and progress has been systematic.

Looking at block explorer data from Cexplorer, the average block saturation of Cardano stands at 56.98% as of December 18. This figure is higher than the monthly average of 44.5%. However, what’s clear is that block size has been gradually rising over the past two years. As of early 2021, the average block usage, measuring capacity, was 64kb. 

Cardano network capacity | Source: Cexplorer

This figure now stands at 88kb, signaling growth and more adoption from app developers. However, it should be noted that the maximum capacity in Cardano is an adjustable parameter. Accordingly, it can be changed in light of transactional demand.

Cardano Refinements: Will ADA Prices Boom Like Bitcoin?

Cardano is in the Basho stage after graduating from Goguen when the network activated smart contracts. With more dapps launching, the platform is optimizing to enhance performance and boost scalability. Scalability is a big concern in blockchains since it can directly determine how fast transactions are processed, a factor that also plays a big role in determining fees. Even so, unlike Ethereum, fees are stable in Cardano, regardless of network load.

Hoskinson also highlighted Cardano’s organic growth in the post on X, attributing its success to the community’s involvement and engagement. The founder emphasized that venture capitalists, the crypto media, or influencers are not driving the platform, just like how Bitcoin grows. 

Cardano price trending higher on the daily chart | Source: ADAUSDT on Binance, TradingView
Cardano price trending higher on the daily chart | Source: ADAUSDT on Binance, TradingView

This comparison could aim salvo at other smart contract competitors, including Solana. The FTX estate controlled a significant portion of SOL’s circulating supply. The defunct exchange will gradually sell SOL to repay creditors. Even so, whether ADA will follow the same trajectory as BTC in the long run remains to be seen.

Feature image from Canva, chart from TradingView

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