Cardano, one of top performing cryptotop 10 in terms of market cap over the last seven days. Bitcoin and the rest of the crypto market are behind it, but Proof-ofStake networks dominate the market.
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Avalanche’s (AVAX), which has a profit of almost 30%, is more profitable than Ethereum (ETH), 16%, and Cardano(ADA) with 13% respectively over the last week. ADA’s price trades at $0.89, as of press time, and could see further gains in the short term as the market experiences further gains.
ADA’s price appreciation could be fueled by rumors about the potential implementation of a burn mechanism for Cardano. WatcherGuru shared the news on Twitter, prompting a response from the ADA community.
The source of the rumor could be a tweet from Clark Alesna, developer and CEO of a company called SAIB Inc. Alesna accepted a “challenge” from Hoskinson and said he will start production of a burn smart contract for ADA. Alesna said:
Charles Hoskinson challenged us to create a #Cardano$ADAburn smart contract. It didn’t seem like anyone took the challenge seriously. So, I’m taking matters into my own hands and started to plan and code it this weekend. I’ll update you guys soon.
Alesna’s tweets and replies seem to suggest that he was joking. Some media outlets took Alesna’s message very seriously and elicited a reply by Hoskinson. As a reply to these reports, Cardano’s inventor shared this meme.
https://t.co/f9qU9xW5gl pic.twitter.com/KfaZEEBXrw
— Charles Hoskinson (@IOHK_Charles) March 19, 2022
The ADA community seems to agree a burning mechanism will never be implemented on Cardano and classified the rumors as “misleading”. Users seem to be in agreement that the system will cause problems for the network. A pseudonym user said:
Inaccurate information. Layer 1 chain burns will not occur. You can’t burn utxo protocol just like bitcoin. Cardano tokens may need to be burned. You need to understand this. What is eth burning? They build differently in accounting models. They are currently struggling to implement decentralised proof-of-stake. We won’t talk about them.
Cardano Ecosystem Set On Fire
Hoskinson shared data that suggests the Cardano ecosystem is growing since smart contracts were implemented. Hoskinson says that this network is home to over 500 projects.
While Non-Fungible Tokens seem to have the most influence on development of this network, native markets for these digital assets are following at a smaller scale. These include Decentralized Exchanges and GamiFi as well as wallets.
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This trend will continue, as Cardano enters its third phase of development known as Basho. Hoskinson said: “Moving the chains. A large wave will come after June when the Vasil hardfork happens”. This could potentially support the continuation of the current bullish trend for ADA’s price.