Recent regulatory headwinds in the U.S. may have played a key role in keeping Cardano (ADA) prices in check, but did little to stop crypto adoption.
Cardano has seen impressive growth over the past year and a half, nearly doubling ADA adoption in the US. Currently, 7% of Americans (about 10 million people) hold ADA, according to data from cryptocurrency analysis firm Morning Consult. Remarkably, as of January 2022, this number is 4%, reflecting nearly 100% growth.
Cardano’s surge in adoption can be attributed to its unique staking feature, which has increased the number of users looking to profit from their holdings. Staking is a decentralized financial service that allows users to earn rewards by holding and validating transactions on the blockchain network. Over the past two years or so, staking has gained traction for generating passive income, with Cardano offering attractive rewards of just over 3% per year.
About 62% of ADA in circulation today is staked, according to Skiing Rewards data, making this practice an attractive option for investors. Cardano currently ranks third after Ethereum (ETH) and Solana (SOL) in terms of crypto networks with the highest staking rewards. Moreover, the popularity of centralized exchanges among US users will further increase the number of stakers, with tens of millions likely to stake his ada through these platforms.
Cardano also maintains a clear advantage over other cryptocurrencies in terms of decentralization. The Cardano community has actively pushed for further decentralization through various platform advancements, most notably his Cardano Improvement Proposal CIP-1694. In late May, Charles Hoskinson emphasized the importance of decentralization, arguing that their goal was to build Cardano in a way that would wake up other cryptocurrencies.
On Friday, June 23, Cardano developer Input Output Global (IOG) launched “Project Catalyst,” a decentralized innovation fund for the Cardano ecosystem, to power the development and growth of the Cardano network. . A large sum of 50 million of his ADA tokens has also been allocated for this purpose, making it the largest pool of funds to date for the ecosystem.
“The Cardano ecosystem needs a decentralized funding and innovation mechanism for its future. I think … when you build from the ground up, you need a mechanism that allows that kind of innovation and growth, and that’s the role of the catalyst.” Said IOG CEO Tamara Haasen said:
Cardano’s architecture attracts many developers mainly due to its attractive features such as low fees and fast transaction speed. As a result, developers are increasingly drawn to the platform, with 1,259 projects currently built on the network and 130 already launched.