All news

Cardano reaches 3.9m wallet addresses and invests $200m to boost ecosystem – ADA about to explode

Posted on by admin
01
Oct
  • Cardano’s founding entity (Emurgo) will invest these funds in various projects over the next three years.
  • Cardano’s wallet addresses surpass 3.9 million, but ADA price is still on a decline.

On Thursday, Ken Kodama, founder of Cardano development lab, Emurgo, told the media the company would invest more than $200 million to boost the ecosystem’s growth over a 3-year period. Kodama disclosed this during the ongoing token 2049 conference. As a founding entity of the Cardano protocol, Emurgo creates products, applications, and services that promote the network’s growth.

Emurgo will fund projects building on the Cardano network and projects from other networks whose products are integrated on the Cardano network and their own. Kodama added that the funds are from Emurgo’s capital, and the company has set aside $100 million to invest in projects from Africa under its African investment program. According to him, using crypto services for lending and borrowing purposes for everyday living in contrast to speculative purposes was a key growth driver in the region.

The Emurgo founder admitted that the Cardano network growth has been slow compared to other networks. But he added that Cardano now has the necessary infrastructure securely expand, and the network will grow significantly over the next few years. Last week, Cardano’s hugely expected Vasil upgrade went live.

The upgrade will enable decentralized applications (DApps) and smart contracts to run on the network without a central administrator. Cardano joins Near and Avalanche networks in implementing a similar method to boost the growth of their networks. While Cardano’s founding entity provides the funds to expand the network’s development, the ecosystem of Near and Avalanche gives the funds to enhance the growth of their networks.

Cardano’s adoption keeps growing

Meanwhile, the network continues to see more adoption as the number of wallets holding ADA surpassed 3.9 million, according to data from the on-chain analytics platform, Messari. The data also shows that over 2,800 wallets hold at least 1 million ADA tokens. Thus, it indicates that Cardano has more whales than most of its competitors, probably because of its low price.

Typically, the rise in the number of wallets holding a token indicates a growth in the ecosystem, and this isn’t different for Cardano and ADA. Furthermore, BitBank (a Tokyo-based crypto trading platform) confirmed via a tweet earlier in the week that it would be listing Cardano’s native token (ADA on its platform).

The platform added that the ADA/JPY pair would be available for trading in the first week of October. Per the announcement, the exchange will start accepting applications for “lending for interest” with Cardano when it lists ADA on the platform. Lending for interest is a service where customers can participate in a loan agreement with a crypto exchange and earn cryptos at a specified rate annually.

The various happenings in the Cardano ecosystem haven’t positively affected ADA’s price yet. ADA’s price is down 0.57 percent in the last 24 hours and trades at $0.434, according to the latest data.

admin