The Cardano network continues to defy expectations and prove his doubters wrong. This time, the network has reached a new milestone, indicating that users are indeed benefiting from it the smart contract functionality.
Cardano is seeing a significant increase in the use of smart contracts
Facts from Cardano Blockchain Insights has revealed an increase in the use of Cardanos Plutus V1 and V2 scripts. As of January 22, 24,050 smart contracts had been executed using these Plutus scripts. This is impressive when you consider that this figure stood at 14,379 at the beginning of this year.
This recent surge can be traced back to January 9, when the use of smart contracts on the network really started to increase. In particular, the number of smart contracts executed on Cardano using the Plutus V2 scripts rose from 8,270 to 12,890 that day. Since then, that figure has skyrocketed to 17,718.
As expected, the Plutus v2 script is more widely used than its V1 counterpart, as the former is a newer generation of Cardano’s smart contract scripting language. Cardano introduced Plutus V2 to reduce user costs and effectively improve script throughput. In the meantime, this development undoubtedly further proves naysayers wrong.
A recent report from crypto research agency K33 boldly claimed that there was no “evidence that Cardano was used for anything.” K33 further suggested that it was a “group of bag holders” who simply made up the majority of transactions on the network, and that there was nothing meaningful going on with Cardano.
ADA price at $0.47 | Source: ADAUSD on Tradingview.com
Cardano’s utility is good for the price of ADA
Dan Gambardello, the founder of Crypto Capital Venture, once emphasized how the Cardano network had improved since the last bull run. The network’s smart contract functionality was one of the features he alluded to, which has since undergone a significant upgrade. Notably, these improvements are part of why he believes the ADA could rise to $11 on the next bull run.
These improvements have indeed contributed to the revival of the ecosystem. Last year, the network saw a significant increase in its DeFi activity, and though there is a decline lately, things are expected to pick up again soon enough. The the network development activity also seems to be paying off, like Gambardello recently unveiled that is there now Social Finances (SocialFI) on Cardano.
Members of the Cardano community will hope that a fiat-backed stablecoin can do just that finally be introduced to the network. The introduction of a stablecoin is believed to be another factor that could help increase Cardano’s usefulness. This could also trigger an influx of new money into the ecosystem, something that could have a positive impact The price of ADA.
Featured image from FXStreet, chart from Tradingview.com
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