Cardano is a prominent blockchain platform in the crypto space. It recently introduced its long-awaited Layer 2 scaling solution called Hydra. The announcement, shared on Twitter, revealed that the project is designed to achieve a highly decentralized approach to scaling by incorporating various solutions that tackle different aspects of the protocol. Hydra is an essential element of Cardano’s scaling strategy and is expected to have a significant impact on the platform’s growth. Will Cardano Hydra change the network? What will happen to ADA price?
What is Cardano Blockchain?
Cardano uses a proof-of-stake consensus mechanism called Ouroboros to validate transactions and secure the network. This method of consensus helps in becoming more energy-efficient than the proof-of-work mechanism used by Bitcoin, for example.
The platform also features a unique two-layer architecture that separates the accounting and computation functions of the blockchain. This design is intended to improve scalability, security, and flexibility compared to other blockchain platforms.
How to Buy ADA Coin?
Cardano’s native cryptocurrency is ADA, and its holders use it to send and receive transactions, as well as participate in the platform’s governance system, where holders can vote on proposals for network upgrades and changes.
You can easily buy ADA coin at one of the exchanges we at CryptoTicker recommend.
What’s new with Cardano?
Cardano has released a new protocol known as Hydra, which functions as a Layer 2 protocol running on top of Cardano’s existing blockchain. The primary objective of Hydra is to enhance the platform’s transaction throughput and efficiency. This happens by creating multiple “heads,” each of which can process a subset of transactions independently. The result is parallel processing of transactions, which significantly increases the network’s overall capacity while maintaining security and decentralization.
One of the most significant benefits of Hydra is its ability to scale horizontally, meaning it can handle a growing number of transactions as the network expands. This adaptability makes it an ideal solution for Cardano, which has gained popularity due to its focus on sustainability, governance, and research-driven development.
Did ADA Price go UP because of Hydra?
Unfortunately, the crypto market is currently consolidating, with some altcoins doing price corrections lower. Cardano prices shot high in 2023 from the low of 24 cents and reached a high of 45 cents. However, from that high price, we saw a correction lower towards the current price of 36 cents.
In fact, this adjustment is simply an adjustment towards the average uptrend that started at the beginning of the year. In figure 1 below, we can clearly see how ADA os correcting towards that yellow average uptrend line.
ADA Price Prediction: Will ADA reach 1$?
It is clear that the Hydra update did not impact ADA prices. This means that Cardano price will continue on its normal trend. As the crypto market consolidates, ADA price broke below the support price of 37.5 cents. This means that ADA should go lower and reach the next support price of 34 cents, which coincides with the yellow average uptrend as shown in figure 2 below.
Should you buy ADA today? Well, based on how ADA prices are behaving currently, it’s better to wait for prices to reach lower areas and buy cheaper.