Cardano (ADA) announced the Alonzo update toward the end of 2021, promising the arrival of smart contracts to the network. For the three years since the launch of Cardano, the network mostly carried block rewards and trivial ADA transactions.
The introduction of smart contracts could in theory allow the arrival of all recent types of crypto development to the Cardano network.
Which Games are Using ADA
ADA has been proposed as a reward token for newly launched play to earn games. NY Countdown 3 recently announced it would award ADA for in-game achievements.
ADA has the advantage of widespread acceptance and liquidity, and will work to move between assets as it has multiple swapping pairs.
Cardano4Speed is a driver-type game which aims to be more involved with the Cardano ecosystem. However, unlike simple reward games, this one will have to wait until launch, with multiple stages in between.
Cardano Tales still relies on the NFT mint model, but also boosts the network’s activity.
ADA Usage Goes Vertical
The usage of the Cardano network is reflected in wallet growth in the past year. ADA active addresses are currently about 100,000, though there is a more significant growth of total addresses created.
The Cardano network also sees about 10 times more transactions per day compared to the last weeks of 2020, or about 100,000 transactions per day.
Can ADA Trade Higher
ADA has the drawback of a very high supply, and with more than 34B tokens outstanding its price cannot be pressured by scarcity.
The current use level is not enough to drive a bigger appreciation. ADA has thus moved to a peak near $3 in the last quarter of the year, but retreated to $1.38.
The high supply at least supports the visibility of ADA in the top 10 of digital assets by market capitalization. Some of the most bullish predictions allow for a hike to $10. In the short term, if the bullish trend is renewed, ADA may reclaim the $3 level and try to hike to $4.