- Cardano released his first Hydra head on his mainnet.
- ADA holders continue to post losses as negative sentiment floods the market.
As legacy Layer 1 (L1) blockchain networks strive to become more scalable, L1 blockchain Cardano leads announced the release of the first Hydra head on its mainnet. This marks a major milestone for the network and paves the way for a new era of on-chain scalability.
Hydra is a family of layer 2 protocols designed to create #Cardano more scalable and adaptable for different use cases that require fast and low-cost transactions. The first Hydra head recently opened on mainnet.
This video is a great starting point for exploring the current release,… pic.twitter.com/g1moYifGNj
— Input Output (@InputOutputHK) May 4, 2023
Realistic or not, here is the market cap of ADA in BTC terms
According to Input Output Hong Kong (IOHK), the developers of the network, Hydra represents,
“a family of Layer 2 (L2) protocols designed to make Cardano more scalable and adaptable for different use cases that require fast and low-cost transactions.”
With the ability to make transactions cheaper and faster on the Cardano network, the launch of the first Hydra head is expected to significantly scale Cardano’s transactions per second (TPS) to 1 million from the 250 it sat before the release of Hydra.
In addition, Cardano’s Total Value Locked (TVL) is expected to rise even further as decentralized finance (DeFi) projects launch on the L2 network.
As before reported, Cardano’s TVL has risen consistently over the past six months. According to on-chain data provider Artemis, the seven-day moving average of the chain’s TVL was $154 million, a level last seen in May 2022.
In the past six months, $ADA TVL has been constantly increasing.
Currently, the seven-day moving average sits at $154 million, a number not seen since May 2022. pic.twitter.com/wkbYoAddQb
— Artemis 🏹 (@Artemis__xyz) May 3, 2023
At the time of writing, Cardano’s TVL was $153.96 million, as of Defillama.
Source: DefiLlama
State of ADA on chain
At the time of writing, ADA switched hands at $0.3911. Since mid-April, the coin has posted a double-digit drop of 13%, down from a high of $0.45 reached on April 15.
The fall in the value of ADA within this period can be partially attributed to a drop in network activity. According to data from Sanitationthe number of daily active addresses trading the L1 coin consistently declined by more than 50% during the reporting period.
Source: Sentiment
With many of its holders still losing, negative sentiment continued to drag on to ADA. The token’s MVRV ratio has remained negative since April 27.
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At the time of writing, the ratio was registered at -41.60%, meaning that if all ADA holders sold at the current value, they would incur losses on their investments.
Source: Sentiment
Finally, ADA’s Open Interests are down 18% since April 15. Still in a downtrend at the time of writing, this showed that interest in ADA trading remained low leading to lower trading volume and increased volatility.
Source: Coinglass