Cardano (ADA) has reached a new level in scaling

Cardano founder and CEO Charles Hoskinson gave a very positive report regarding the project. Nearly a year after the announcement, the first Hydra Heads have been deployed on a public testing network.

Scalability of Cardano

Cardano’s Hydra Heads are a key element of the scaling process. Hydra is a collection of protocols that are aimed at improving security and scalability of the network. Although the original study was part of the Ouroboros research project, it has been a key part in the development of an independent path for the protocol.

IOHK recently published a blog post on Hydra’s goal of reducing latency and increasing bandwidth and providing cost-effective solutions without the use of a lot of memory. According to the blog post, Hydra Heads is a key building block that leverages the features of Extended Unspent Transaction Output (EUTXO) enables more complex solutions based on its capabilities.

While Cardano has laid the foundation for future improvements in its ecosystem, the ADA has failed to keep up. Shortly after reaching its all-time high, it fell below its daily moving average of 50. The ADA is now consolidating at $0.81, down 75% from a high of $3.10.

The bulls must close above the daily moving average of 50 at $0.96 to stop the short-term declines. Closing below $0.74 may continue the bearish trend if they lose strength.

According to IntoTheBlock data, ADA has a 68% 30-day correlation with BTC. Therefore, investors and traders should keep an eye on the original cryptocurrency.

Our recent reports have revealed that Cardano continues to grow steadily, with 517 projects being built on the blockchain as of March 11. These include non-fungible token collections, DeFi loan projects, and new wallets. NFT collections make up the largest percentage of the projects being built on Cardano, as much as 34.7%.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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