Second only to Ethereum, Cardano has what it takes to be the next NFT event; it remains to be seen if it can develop fast enough
- Why has Cardano taken off so much?
- But will this make the altcoin the next NFT star?
Immediately after Ethereum (ETH), Solana became the big star of the non-fungible token (NFT) segment. However, one of ETH’s main competitors was hit by the collapse of FTX and Alameda Research, which made room for another smart contract network, Cardano (ADA).
It’s important to know that Cardano’s rise in the NFT arena didn’t just happen after the collapse of the Sam Bankman-Freed (SBF) empire. For example, on October 27, DappRadar reported that in just one month, Cardano’s non-fungible token trading volume reached $19 million.
Indeed, this has been a huge joy for altcoin holders as, in addition to becoming the third largest NFT protocol, Cardano’s transaction volume has reached a peak not seen since May 2022.
Why has Cardano taken off so much?
Shortly after some delays, the Cardano network underwent a Vasil hard fork in September of this year. This update directly affected the scalability of the Ethereum competitor. With the launch of the smart contract platform and higher levels of scalability, it is only natural that more and more investors will look to the ADA NFT network.
Speaking about the successful growth of NFTs on Cardano, Peter Nyerop, a member of the Cardano Fans staking pool, argued that there are three factors that are causing the growth of non-fungible tokens along with cryptocurrency. They are:
- NFT transactions do not fail;
- Costs are low;
- You don’t spend money on gas bills.
Having highlighted these points, we can say that Cardano can stand out from its main competitors.
At the time of this writing, Solana has shown the market a completely unstable network, where transactions are interrupted at moments of high usability, as a result of a hacker attack, or simply due to a misconfigured node. Ethereum, on the other hand, needs no comment when it comes to high transfer costs.
In addition, Cardano has a strong community and is looking to form important partnerships for its launches, including NFTs.
For example, in April 2022, the Clay Nation NFT project began an official collaboration with Snoop Dogg to bring iconic clay animations, mud fields, and music content to Cardano.
Of course, we can’t help but note that it is possible to send multiple Cardano NFTs with just one transaction using the altcoin. This is true even if they are from different collections.
It also has Ledger (not smart contract) guaranteed accounting integrity and Ouroboros consensus-verified security. In addition, its monetary policy rules are 100% regulated, no surprises.
But will this make the altcoin the next NFT star?
It is a fact that the highlighted points contribute to improving the usability of Cardano. However, the claim that this alone may be enough for the altcoin to secure its status as the leader of the NFT may not be Cardano’s best statement.
The Cardano team needs to find an operating point where cryptocurrency development research does not delay development and is completed quickly, as required by the market.
Cryptocurrency investors love flexible solutions and projects that take time for their supply to eventually give way to others that do not have such a reliable network. Solana is here to show that the information is correct.
Even though it is a cryptocurrency with constant interruptions in its blockchain, this has not been an obstacle for Solana to stand out in the NFT segment. On the other hand, the search for an error-free network meant that Cardano did not grow as fast as its competitor.
Of course, the research work done by the altcoin team should be appreciated, as Cardano users have nothing to complain about in terms of instability. But finding a way to provide better services without spending years on it may be what sets Cardano apart in the world of non-fungible tokens.