Here is What Sets Apart Cardano From Other Top Cryptocurrencies

Cardano (ADA), a prominent proof-of-stake cryptocurrency, has achieved exceptionally low inflation, drawing both commendation and criticism from the crypto community.

In the past year, Cardano’s inflation rate was recorded at a mere 2.5%, considerably lower than its competitors. For comparison, Avalanche (AVAX) and Polkadot (DOT) have much higher rates, and even Ethereum (ETH) shows twice the inflation of Cardano. Bitcoin (BTC) remains the benchmark for scarcity with an inflation rate of 0.86% post-2024 halving. These statistics were shared by a well-known Cardano community figure, @cardano_whale.

Cardano’s minimal inflation, combined with its extensive adoption and economic sustainability, positions it as a strong contender in the crypto space for 2024. The community suggests that if Cardano’s inflation were to rise significantly, it would face intense criticism, highlighting the current satisfaction with its economic model.

On August 2, 2024, Cardano achieved a notable milestone by completing 2,500 days without any network outages, showcasing its reliability.

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Despite these successes, Cardano faces ongoing criticism regarding its network activity and the development pace of its decentralized finance (DeFi) sector. According to DefiLlama, the total value locked (TVL) in Cardano’s DeFi protocols peaked at over $468 million in March 2024 but fell to $170 million after a price drop. Since then, the ecosystem has shown signs of recovery, with Minswap, Indigo, and Liqwid contributing significantly to the TVL.

In summary, Cardano’s ultra-low inflation rate and robust network reliability present a balanced narrative, with notable achievements tempered by areas needing further development.

Alexander Stefanov