Cardano Sees Over 40,000 Smart Contracts Deployed 4 Days After Alonzo HFC, How This Affects The Price
September 16 2021 - 7:00PM
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Smart contracts have become a reality on the Cardano network after
September 12th. After the Alonzo Hard Fork Combinator launch,
developers could now go ahead and start creating smart contracts on
the ecosystem. This would aid in developers creating decentralized
applications (DApps) to provide decentralized finance (DeFi)
services to the users of the blockchain. With the number of smart
contracts that have been created on the network, it is no doubt
that we are about to witness an influx of new decentralized apps on
the network. The project has said that they are supporting
developers in bringing their projects to life on the platform. By
making the Cardano ecosystem as safe and developer-friendly as it
possibly could. The developers, in turn, have shown their
confidence in the network with the number of smart contracts
already live on the ecosystem. Related Reading | Cardano
Founder Charles Hoskinson Says He Wants To Eliminate The Need For
CEOs And Presidents Cardano Sees Over 40K Smart Contracts In Four
Days The first day after the launch was completed saw over 100
smart contracts created in the first 24 hours. This number in
itself was impressive. But the subsequent days have shown an even
accelerated timeline for the creation of these smart contracts.
Thursday 16th September marks the fourth day after the Alonzo HFC
and the current count for the smart contracts on the network now
sits at almost 41K. While most of these smart contracts are not
going into effect now, developers are creating them in a bid to
lock their tokens ahead of the release of their decentralized
applications. It evidences the number of projects developers are
already working on to bring to the Cardano ecosystem. With the rise
of decentralized finance still continuing, and as more people move
away from other leading smart contracts platforms in favor of a
cheaper and faster alternative like Cardano, more protocols are
expected to launch their smart contracts on the network. Related
Reading | New To Bitcoin? Learn To Trade Crypto With The
NewsBTC Trading Course Currently, these smart contracts are in a
timelock contract, effectively locking them up for a specific
period of time until the developers are ready to make use of them.
This will provide the developers the time they need to develop
their protocols while having secured their smart contracts for
their uses ahead of time. How This Affects This Price The effect of
this many smart contracts being created on the Cardano blockchain
may not be apparent immediately. But there is no doubt that the
rate at which the smart contracts are being created will have
long-term positive effects on the price of its native asset ADA.
ADA price trending around $2.4 | Source: ADAUSD on TradingView.com
The rise of decentralized finance has been one of the major driving
forces behind Ethereum’s success, and most recently, Solana’s
success. In the same way, DeFi protocols on the Cardano blockchain
will also effectively increase the value of its token. This is
because once these decentralized applications are up and running,
users will need to use ADA to carry out transactions on the
blockchain. Whereas users do not necessarily need to hold ADA
coins, they will need to be purchased to trade and pay for
transaction fees. This will create demand for the coin, in the long
run, leading to a higher value of the digital asset. Featured image
from Decrypt, chart from TradingView.com
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