As a seasoned researcher who has been following the cryptocurrency market for over two decades now, I find myself constantly intrigued by the dynamics of Cardano (ADA). The latest revelation about its ultra-low inflation rate of 2.5% is yet another testament to its stability and resilience in a highly volatile market.
Cardano (ADA), a well-established proof-of-stake (PoS) cryptocurrency, has reached exceptionally low rates of monetary inflation. A dedicated member of the community discusses the implications for Cardano’s economy and why this low inflation rate can attract both praise and criticism.
Stable adoption for scarce asset: Cardano (ADA) community on 2.5% ADA inflation
Over the past year, the digital currency Cardano (ADA), which operates on a proof-of-stake system, experienced an inflation rate of 2.5%. This rate is approximately six times lower than that of Avalanche (AVAX) and four times lower compared to Polkadot (DOT). These findings were presented by @cardano_whale, a well-known member of the Cardano (ADA) community who goes by a pseudonym.
Compared to its toughest competitor, Ethereum (ETH), Cardano (ADA) has a lower inflation rate, with Ethereum experiencing twice as much inflation as Cardano. Conversely, Bitcoin (BTC) is known for its scarcity, and after the 2024 halving, it will have an inflation rate of approximately 0.86%.
An ardent supporter of ADA cautioned that if its inflation rate reaches comparable levels to those of other competing cryptocurrencies, the potential backlash could become enormous.
Ponder for a second how you’d react if inflation on Cardano reached 15%. You might find yourself yelling in excitement, frantically seeking potential buyers, all while offloading your Cardano holdings to acquire more scarce assets such as Bitcoin.
In 2024, Cardano (ADA) could be an ideal choice due to its widespread acceptance, economically viable and durable network, and low inflation stemming from its scarcity, making it a potentially attractive investment.
As covered by U.Today previously, Cardano (ADA) logged a major reliability milestone this month.
Its community participants celebrated its 2,500th day without network outages Aug. 2, 2024.
Cardano (ADA) DeFi TVL dips below $200 million
Concurrently, Cardano (ADA) continues to face criticism from Crypto X due to its relatively low network activity and the sluggish development of its Decentralized Finance (DeFi) infrastructure.
According to information from DefiLlama, the amount of money locked in Cardano’s (ADA) DeFi applications reached a high point of more than 468 million dollars on March 14, 2024.
Following a decrease in its value, the Decentralized Finance (DeFi) environment linked with Cardano (ADA) dipped to approximately $170 million, however, it showed signs of a slight rebound afterward.
Approximately half of the total value locked (TVL) in USD terms is managed by three platforms: DeFis, Minswap, and Indigo, as well as Liqwid.
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2024-08-09 18:12