Cardano’s DeFi ecosystem achieved a new feat when the total value of ADA tokens staked on the network crossed 430 million, data from DeFiLlama showed.
With staking, holders of ADA tokens can allocate their tokens to a pool and get rewards based on their stake. Staked value is the sum of the USD worth of all participating tokens.
The more people who engaged in staking, the more secure and decentralized the network will become while generating passive revenue.
Staking has become the preferred choice over minting which has come under criticism for consuming more power and energy.
That said, the latest milestone reflects the growing confidence in Cardano’s proof-of-stake [PoS] consensus mechanism.
Due to its decentralization, Cardano is more resistant to potential assaults and reduces the likelihood of a single point of failure, which may be one of the causes of the sharp increase in staking.
Another notable mention is the successful integration of Plutus V1 into Plutus V2 deserves special recognition. Plutus V2 now incorporates all of the built-in types and features from Plutus V1, which has improved Cardano’s functionality and broadened the options for developers.
But how does this affect Cardano’s price?
As more tokens are staked, less ADA is available for trading creating a supply shortfall. The market value of ADA may be affected by this supply-demand imbalance.
Investors that chose to stake their ADA tokens profit from potential price growth in addition to contributing to the network.
In another significant development, Cardano’s trading volume over the past 24 hours surpassed $12 million, with a weekly average standing at $50 million.
On the other hand, the Cardano network recently suffered a slowdown as users faced hour-long swaps delay on its decentralized exchanges.
As per reports, the issue was not limited to a single exchange but rather to the network that supports it.
The lengthy swaps, which took 30 minutes to complete, have caused quite a commotion in the community.
The recent upgrade, Vasil hard fork promised high-speed transactions with its pipelining technique [that’s multiple avenues and sub-chains making the transactions faster].
However, the lengthy swaps serve as a cautionary reminder that improvements must be made in order to achieve the network’s target of 1 million transactions per second.