Cardano’s price scaled by 13% a day before the launch of SundaeSwap, the first decentralized finance (DeFi) exchange on the Cardano blockchain. SundaeSwap will debut as a purposeful beta decentralized exchange (DEX), according to the designers and developers. Users will be able to create trading pools for their tokens.
This article examines Cardano, Cardano price, SundaeSwap, and how the launch of SundaeSwap affects Cardano price.
Cardano is a blockchain platform that the public can access without restrictions. It is a decentralized and open-source blockchain, with consensus obtained by proof of stake. Its coin, ADA, can be used to allow multi-user transactions. Charles Hoskinson, a co-founder of Ethereum, established Cardano in 2015.
It was intended to be a next-generation version of the Ethereum concept, with an adaptable, long-lasting, and scalable blockchain. Cardano intends to make smart contracts possible, allowing developers to create various decentralized finance apps, new crypto assets, games, and more.
Cardano is one of the foremost Ethereum competitors, with a tech stack that is gradually gaining traction. There’s even more reason to be curious about Cardano now that SundaeSwap, a DEX created for the Cardano blockchain, has been launched. The launch of its first DEX SundaeSwap is the main driver of ADA’s current network expansion.
Without a stable DEX to support quick swaps, you can’t have a widely used ecosystem. SundaeSwap is one such DEX, with a one-of-a-kind design that seeks to center the Cardano ecosystem.
SundaeSwap is a decentralized exchange system for the Cardano Network that allows anyone to trade native tokens with ADA. Users will exchange, stake, loan, borrow, and more in a genuinely decentralized method with its protocol.
SundaeSwap, whose token is SUNDAE, like other DEXs, uses the investment technique called “yield farming.” In Yield farming, users lend or stake their coins or tokens in exchange for transaction fees or interest as compensation. Smart contracts are employed to match token swaps between users and return a part of trading fees to the investors who supply liquidity to the platform.
“While the DEX’s smart contracts have been fully audited and the DEX will meet all industry standards for security,” the team explained during the launch through a post. “However, due to existing transaction size limits on the Cardano blockchain, the implementation of fully decentralized governance will not be possible immediately.”
SundaeSwap will launch as a fully functional beta decentralized exchange (DEX) soon, according to the project’s developers. According to the team, users will be able to create trading pools for their tokens.
SundaeSwap’s whitepaper, which covered the protocol’s basics, was released on June 1, 2021. The project’s Initial Stake Pool Offering (ISO), which will define how the SUNDAE token is divided among its users, is one of the more innovative ideas. The ISO has been postponed; however, it will be held in the coming weeks.
The Cardano blockchain insights report shows a curious shift in total blockchain load over the last month. The platform’s current average blockchain load is 93.19 percent, which means that virtually all of the blocks have been filled. On January 1, however, the blockchain load was only 33.8 percent. Now we can see how quickly the blockchain load has risen and has remained at levels well above 90%.
Cardano price has risen over the years and is almost experiencing an all-time high in recent weeks. This is attributed greatly to the launch of SundaeSwap. Cardano’s price is considered to be at the start of a surge.
How does SundaeSwap influence Cardano price?
Sundaeswap has greatly influenced Cardano’s price. The blockchain has seen a significant increase in TVL of around $82 million in a short time after its inception. In the meantime, smart money investors in Cardano are seeing their portfolios double, followed by a revival in network growth.
Although customers noticed network congestion difficulties, SundaeSwap DEX is regarded as the most successful upgrade on Cardano’s mainnet. According to the charts, $1.5 is a historically strong resistance level, implying that profit-taking could push prices lower.
Cardano is progressively gaining popularity among the bigger population with its regular advances. The need of the hour is market sentiment; if merchants get back to work, ADA will rise to the top of the priority list. If more DEXs launch on Cardano’s network, the bulls may even drive the price to new highs.