The Cardano network has proven its critics wrong once again by reaching a new milestone in terms of smart contract usage. Recent data from Cardano Blockchain Insights indicates a significant increase in the execution of Cardano’s Plutus V1 and V2 scripts. This surge in smart contract activity showcases the growing adoption and utilization of Cardano’s smart contract functionality.
At the start of this year, the number of smart contracts executed using Plutus scripts on the Cardano network stood at 14,379. However, as of January 22, this figure has skyrocketed to 24,050. The majority of this increase can be attributed to January 9, as the network experienced a significant surge in smart contract activity. On that day alone, the number of smart contracts executed using Plutus V2 scripts rose from 8,270 to 12,890, and it has continued to climb ever since, currently reaching 17,718.
Unsurprisingly, the Plutus V2 script is more widely used compared to its predecessor, Plutus V1. This is likely due to the fact that Plutus V2 is a newer and more advanced iteration of Cardano’s smart contract scripting language. By introducing Plutus V2, Cardano aims to reduce user costs and enhance script throughput. This development not only showcases the network’s progress but also serves as a strong rebuttal to those who doubted Cardano’s capabilities.
The improvements in Cardano’s smart contract functionality have played a vital role in the resurgence of its ecosystem. In the past year, the network experienced a significant rise in decentralized finance (DeFi) activity, and although there has been a recent decline, experts predict that the trend will soon reverse. Additionally, Cardano’s development efforts have led to the introduction of Social Finance (SocialFI) on the network, igniting hopes for the introduction of a fiat-backed stablecoin. The introduction of a stablecoin could increase Cardano’s utility and attract new investors, potentially driving up the price of ADA.
Industry experts, such as Dan Gambardello, the founder of Crypto Capital Venture, have highlighted the remarkable progress of the Cardano network. Gambardello specifically mentioned the significant upgrades made to Cardano’s smart contract functionality since the last bull run. He predicts that these improvements, along with other factors, could propel the price of ADA to $11 in the next bull run. This outburst of optimism underscores the growing confidence in Cardano’s potential.
The Cardano network has undoubtedly defied expectations, with its increasing smart contract usage demonstrating the adoption and utilization of its innovative functionality. The rise in the execution of Plutus V1 and V2 scripts showcases the network’s continuous development and improvement. As the Cardano ecosystem evolves and expands, fueled by the introduction of Social Finance and the potential for a stablecoin, the future looks promising for the network and its native cryptocurrency, ADA.
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