Second only to Ethereum, Cardano has everything it needs to become the next hot spot in the NFT zone; whether it can grow fast enough remains to be seen
Contents
- Why has Cardano skyrocketed like this?
- But will this make the altcoin the next NFT star?
Right after Ethereum (ETH), the big star in the non-fungible tokens (NFT) segment was Solana. However, one of ETH’s main competitors was hit by the collapse of FTX and Alameda Research, giving way to another smart contract network, Cardano (ADA).
It is important to be aware that Cardano’s growth in the NFT arena does not only come after the collapse of the Sam Bankman-Fried (SBF) empire. As an example, on October 27, DappRadar reported that in just one month, Cardano’s non-fungible token trading volume had hit the $19 million mark.
Indeed, it was a huge joy for altcoin holders as, in addition to Cardano becoming the third largest NFT protocol, its transaction count reached a peak not seen since May 2022.
Why has Cardano skyrocketed like this?
Shortly after some delays, the Cardano network underwent the Vasil hard fork in September this year. This update directly worked on the scalability of the Ethereum competitor. With the launch of a smart contract platform and a higher level of scalability, it is only natural that more investors will turn to ADA Network NFTs.
Speaking on the successful growth of NFTs on Cardano, Cardano Fans Staking Pool member Pieter Nierop argued that there are three factors that make non-fungible tokens grow along with the cryptocurrency. They are:
- NFT transactions do not fail;
- Costs are low;
- You don’t waste your money on gas costs.
With these points highlighted, it is possible to say that Cardano can stand out from its main rivals.
At the time of writing, Solana has shown the market a completely unstable network, with transactions interrupted in moments of high usability, in a hacker attack, or simply in a misconfigured node. Ethereum, on the other hand, needs no comment when it comes to high transfer costs.
Additionally, Cardano has a strong community and seeks to form important partnerships for its launches, including NFTs.
In April 2022, for example, the NFT Clay Nation project launched an official collaboration with Snoop Dogg to bring iconic clay animations, dirt fields, and music content to Cardano.
Of course, one cannot fail to specify that with the altcoin it is possible to send several Cardano NFTs in a single transaction. This is true even if they come from different collections.
It also has accounting integrity guaranteed by Ledger (not a smart contract) and security validated by the Ouroboros consensus. In addition, its monetary policy rules are 100% regulated, unsurprisingly.
But will this make the altcoin the next NFT star?
It is a fact that the highlighted points contribute to an increase in the usability of Cardano. However, to say that this alone can be enough for the altcoin to cement itself as the leader of NFTs may not be Cardano’s best statement.
The Cardano team must find a working point at which research for the development of the cryptocurrency does not delay development and is fast in the manner demanded by the market.
Cryptocurrency investors love nimble solutions, and projects that take time to deliver end up losing ground to others that don’t have such a robust network. Solana is there to show that the information is true.
Although it is a cryptocurrency with constant interruptions on its blockchain, this did not prove to be an obstacle for Solana to stand out in the NFT segment. On the other hand, the pursuit of a flawless network has meant that Cardano has not grown as fast as its rival.
Of course, the research work done by the altcoin team should be valued, because Cardano users have no complaints in terms of instabilities. But finding a way to provide the best services, without taking years to do so, could be what differentiates Cardano in the world of non-fungible tokens.