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The 2022 bear market has created a major headache for cryptocurrency holders. Cardano (ADA) has experienced a 78% decline over the last 12 months. However, 2023 could be a turning point for altcoins.
In 2022, even if prices drop, Cardano We were able to do a major upgrade, the Vasil hard fork. Upgrades have been brought to the altcoin network to improve cryptocurrency performance by increasing scalability.
Additionally, Vasil will enable the housing of applications from decentralized finance (DeFi), smart contracts, and other dApps segments, allowing Cardano to grow in key areas of the crypto market.
As such, the ADA blockchain will come to work in many sectors and could be a bullish catalyst for Cardano in 2023.
stablecoin
Arguably, stablecoins are the fastest growing asset in recent years due to their low volatility. Stable assets are used by all categories of investors, from novice to experienced.
Stablecoins are one of the biggest highlights of the Ethereum (ETH) network, accounting for much of the gas rate of major altcoins.
At the time of writing, three stablecoins are in the top 10 by market capitalization, highlighting the potential of these assets.
With the arrival of Vasil, Cardano is poised to enter this space and leverage the use of blockchain.By 2023, cryptocurrency holders will have at least two stablecoins issued on the ADA network. you might expect.
The USDA stablecoin is the first on this list. Maintain a peg to the US dollar, backed by fiat assets.
Anzens, one of the teams responsible for launching the stablecoin, has partnered with a regulated financial services firm based in the US, resulting in cash deposits with the USDA in a compliant manner. It’s a schedule.
Other 2023 stablecoins on the ADA network are JedWe aim to leverage Cardano’s smart contract design to bring its value as close to $1 as possible.
To achieve this goal, Djed holds reserves of a reserve currency and mines and burns other stable assets and reserve currencies to limit volatility.
Cardano and Africa
In 2023, Cardano efforts on the African continent will also progress.
The altcoin team has been able to strike deals with African governments, for example allowing Ethiopian developers to apply blockchain technology to the country’s agriculture.
If Cardano development expands in Africa next year, ADA could be adopted on a large scale.
Given that access to banks is very difficult for Africans on the continent, we may also see applications for decentralized finance (DeFi).
A more prominent presence of Cardano in DeFi could make it the blockchain of choice in Africa for new applications in this space, increasing adoption as well as on-chain cryptocurrency activity.