The 2022 bear market has brought major headaches to cryptocurrency holders. Cardano (ADA) has experienced a 78% drop in the last 12 months. But 2023 could be a turning point for the altcoin.
In 2022, even with the falling price, Cardano managed to undergo a major upgrade: the Vasil hard fork. The upgrade came to the altcoin’s network to improve the cryptocurrency’s performance by increasing its scalability.
In addition, Vasil enables the accommodation of applications from decentralized finance (DeFi), smart contracts and other dApps segments, causing Cardano to grow in key areas of the crypto market.
As such, the ADA blockchain becomes functional for many sectors that could be bullish catalysts for Cardano in 2023.
Without a doubt, stablecoins are the fastest growing assets in recent years because of their low volatility. Stable assets are used by all categories of investors, whether beginners or experienced.
Stablecoins are among the biggest highlights on the Ethereum (ETH) network, accounting for much of the main altcoin’s gas rates.
At the time of writing, three stablecoins are in the top 10 by market capitalization, accentuating the potential of these assets.
With the arrival of Vasil, Cardano is poised to enter this area and leverage the use of its blockchain. By 2023, cryptocurrency holders may expect at least two stablecoins to be launched on the ADA network.
USDA stablecoin is the first on this list. It will maintain its peg to the US dollar being backed by fiat assets.
Anzens, one of the teams responsible for launching the stablecoin, has partnered with a regulated financial services company based in the U.S. As a result, it will make cash deposits to USDA in a regulatory compliant manner.
The other 2023 stablecoin on the ADA network will be Djed. It aims to keep its value as close to $1 as possible by taking advantage of Cardano’s smart contract design.
In order to achieve this goal, Djed has a reserve of base currencies while mining and burning other stable assets and reserve currencies to contain fluctuations.
Cardano and Africa
The year 2023 will also see the advancement of Cardano’s work on the African continent.
The altcoin team has managed to sign contracts with governments in Africa, such as Ethiopia, for example, where Ethiopian developers can apply blockchain technology to the country’s agricultural industry.
In case Cardano’s developments grow in Africa in the next year, mass adoption may come to ADA.
The continent may also see an application for decentralized finance (DeFi), considering that the difficulty of banking access for Africans is enormous.
A more pronounced Cardano presence on DeFi could make it Africa’s blockchain of choice for new applications in this area, increasing not just adoption but also on-chain cryptocurrency activity.