Cardano’s smart contracts are on the rise, with over 24,000 executed, boosting confidence in the network.
ADA’s price may reach $11 in the next bull run due to network improvements and increased DeFi activity.

Cardano, the blockchain network consistently defied skeptics, has recently witnessed a remarkable surge in smart contract utilization.  Data from Cardano Blockchain Insights reveals that the network has hit a significant milestone in smart contract execution, underscoring the increasing adoption of its Plutus V1 and V2 scripts.

Smart Contract Milestone

On January 22, Cardano recorded 24,050 smart contract executions utilizing Plutus scripts. This impressive figure marks a substantial growth trajectory from the 14,379 smart contracts executed at the beginning of the year. The rise in smart contract usage on Cardano took a particularly notable turn on January 9, when the number of smart contracts executed using Plutus V2 scripts surged from 8,270 to 12,890 in a single day. Since then, this number has continued to soar, currently standing at 17,718.

The dominance of Plutus V2 over its predecessor, V1, reflects its popularity, given that it represents a newer generation of Cardano’s smart contract scripting language. Notably, Cardano introduced Plutus V2 to reduce user costs and enhance script throughput, further solidifying the network’s utility.

The recent surge in smart contract usage on Cardano is a compelling rebuttal to earlier skeptics who questioned the network’s utility. A crypto research firm, K33, had boldly asserted that there was no “proof of Cardano being used for anything,” suggesting that fabricated transactions dominated the network. The notable uptick in smart contract executions, however, challenges this narrative, highlighting the genuine adoption of Cardano’s capabilities.

Positive Impact on ADA Price

Dan Gambardello, founder of Crypto Capital Venture, pointed out the substantial improvements in Cardano’s network since the previous bull run. The network’s smart contract functionality is among the key features undergoing significant upgrades. Gambardello’s optimism is reflected in his prediction that ADA, Cardano’s native cryptocurrency, could reach $11 in the next bull run, partly thanks to these improvements.

These advancements have played a crucial role in revitalizing Cardano’s ecosystem. Despite a recent decline in DeFi activity on the network, the momentum is expected to pick up once again. Additionally, Gambardello’s Social Finance (SocialFI) revelation on Cardano signifies the network’s progress in fostering new and innovative developments.

Additionally, for the Cardano community, the introduction of a fiat-backed stablecoin on the network holds great promise. The potential launch of such a stablecoin could further enhance Cardano’s utility, attracting new investors and contributing positively to ADA’s price. The prospect of adding a stablecoin to its repertoire is yet another testament to Cardano’s commitment to evolving and adapting to the ever-changing crypto landscape.

Unprecedented Drop in Whale Transactions

On a contrasting note, Cardano has experienced a remarkable reduction in large transactions typically associated with whale movements. This abrupt decrease has led to a near-halt in the network’s usual activity. On-chain metrics, essential indicators of blockchain activity, are signaling a sharp decline in these large transactions, which often signify significant whale activity.

While such a drastic decrease typically hints at potential network dynamics alterations, the precise reasons behind this unprecedented drop in whale transactions remain in mystery. This unexpected change in behavior raises questions about the motivations and intentions of major ADA holders.

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Filed under: Bitcoin - @ January 29, 2024 4:27 pm