Cardano #1 in chain activity 3 days in a row!
These days the Twitter space has been buzzing about the chain activity on Cardano. But after a month of relentless FUD this is barely a relief. I’ll summarize the past month’s activity, since SundaeSwap’s DEX was launched on Jan 20th. That alone, caused a tremendous spike in volume on the blockchain. Add to that volume the token drops from DripDropz, which sends tokens every epoch from ISPOs to the delegators in bulk. Add more dExes that appeared around the same time, even a little before, like MuesliSwap. This resulted in huge delays, even for simple transactions, taking minutes instead of seconds (or hours on the Layer 2 applications). The blocks were full to their maximum capacity and transactions had to wait in a queue before they would be picked by a validated block. Given that on average every 20 seconds a block is propagated, and most transactions would need 20–30 or more blocks until they were validated, the delay was in the order of 10–20 minutes.
IOG has acted on a series of preplanned network parameter tweaks, increasing the block size from 64K to 72K and then to 80K, allowing for more data to fit in each block. They also increased the Plutus memory size limit by 12.5%, allowing for more operations per script. All these measures seemed to have worked, as now the network is performing much better. (I send TXs within 5 minutes from a passive node). The amazingly positive outcome from all this real-life experiment is that the Cardano network, working under 95% or more load, never wavered, never lost a transaction, never broke. I am not talking about the performance of a wallet, but of the blockchain.
Finally, all this activity, people swapping tokens, minting-buying-selling-NFTs, sending around ADA etc. has accumulated enough that we go straight to first place on Chain Activity!
As you can see today’s (Feb 15, 2022) chart from messari.io has $33.74Bn Adjusted transaction volume for Cardano, followed by $17Bn for Bitcoin and $5.94 for Ethereum. Yesterday the numbers were $17Bn for Cardano, $9Bn for Bitcoin, $4Bn for Ethereum and $4Bn for XRP, which was interesting because 17 = 9 + 4 + 4!
The other interesting thing to note is the transaction fees. For all that volume on Cardano, less than $50K were spend on fees. For Bitcoin it is $480K and for Ethereum $18.57M. If we divide those 2 numbers to get the value of fee per $1 transacted, we get:
Which means that moving value on the Cardano network is on average 20 times cheaper than the Bitcoin network and 2123 times cheaper than the Ethereum network!!! Unbelievable!
As for the argument that Cardano’s active addresses are less, that proves that the people in the Cardano community are much more active than the other blockchains. There are 154K active Cardano addresses, compared to 900K on bitcoin and 600K on Ethereum, i.e., 1/6th and 1/4th respectively. But comparing that with the market capitalization, we’re ahead again: $36.7Bn for Cardano, vs. $834Bn for Bitcoin and $371Bn for Ethereum, i.e., 1/22th and 1/10th respectively. I am not a financial advisor, do your own research, but that looks as a massively undervalued asset right there. Finally, I’ll say that Cardano is 5 years old, Ethereum 7 and Bitcoin 13. So, I’m not worried that Cardano doesn’t have the same number of active addresses or market cap. We are catching up and one day we will have more active addresses and possibly higher market cap.
If you find this article useful, please consider delegating some ADA to my pool:
ADA Skepsis — ASKP
www.skepsispool.com
If you delegate before February 19th, you will also receive Sundae tokens, as part of the reverse ISO.
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