Cardano still has long way to go to get closer to networks like Ethereum, but it is certainly not ghostchain
The common “Cardano is a ghostchain” narrative that was launched by Ethereum maxis a few weeks back might not be the most accurate thing in the world, considering the number of transactions the network saw this year.
According to Cardano Blockchain Insights, 25% of all transactions on the network have been generated this year only, thanks to the release of decentralized applications and the change in the way of handling transactions.
2/ So almost 25% of all tranactions were generated in the last year.
if you want to examine which dApps have generated load – find out at @dappsoncardano https://t.co/xv5UEjvZ7y
— Cardano Blockchain Insights (@InsightsCardano) October 8, 2022
The release of SundaeSwap, Minswap and various NFT marketplaces provided the most network load, according to Dapps on Cardano. Contrary to the popular belief, the blockchain can handle more than one transaction per second. However, it is done differently compared to a network like Ethereum.
Because it uses the eUTxO accounting model, ADA has to “fit” numerous entities in one block and then redistribute funds among them, making numerous transactions per block de facto possible.
Due to the aforementioned mechanism, some blockchain explorers and network trackers cannot see the true number of transactions and show values way below the actual number of transactions made in a certain period.
However, the network still has a long way to go to catch up with blockchains like Ethereum or Solana that successfully process thousands of transactions per second, especially during the rise of the DeFi and NFT industries.
The lack of demand for decentralized solutions that persists in the industry today makes Cardano less profitable than it could be. Both the NFT and DeFi industries took a big hit after the cryptocurrency market entered the bear market it has not exited yet.